Inflationary forces dominate

MACROECONOMIC FOCUS

Patrick Armstrong, managing partner of Distinction Asset Management, reveals why he thinks inflation will continue to rise.

Over the past year there has been much debate between the inflationary and deflationary camps. In the inflation camp people are worried about the effects of quantitative easing, printing of money, zero interest rate policies and rapidly rising energy and food prices. The opposing camp counters with deflationary forces from weak economic growth, high unemployment and significant amounts of excess capacity in most Western economies. We believe every month this debate is becoming more and more one sided with inflationary pressures continuing to dominate. There is no longer even a questio...