This recent inflationary rise in commodities, factory input prices, retail sales and other data was clearly forecasted by central bankers and economists.
Everyone knew that thanks to base effects, supply constraints, and the initial demand surge from re-opening would lead to higher prices and inflationary pressures. CBs said they would look through this data as it would likely be transitory.
Yet, here we are, panicking about inflation when we're only just starting to re-open.
🛢️ Commodities May Have Just Begun a New Supercycle - JPM
Prices may also jump as an “unintended consequence” of the fight against climate change, which threatens to constrain oil supplies while boosting demand for metals needed to build renewable energy infrastructure, batteries and electric vehicles.
Central Bank Speeches schedule for the week ahead:
Monday, 8 February 2021: Christine Lagarde
Tuesday, 9 February 2021: Philip R. Lane
Wednesday, 10 February 2021: Fabio Panetta
Wednesday, 10 February 2021: Christine Lagarde
Thursday, 11 February 2021: Luis de Guindos