Inflation or deflation?

Jim Leaviss, head of retail fixed interest, M&G Inflation has reared its ugly head again. At least, that is what some of the headline writers on our newspapers would have us believe. In truth, there are forces for both inflation and deflation in the economy. On balance, our view is that we will be in a disinflationary environment for some time to come - growth and interest rates will remain low and the pace of price rises will be muted. That said, some investors are concerned about inflation. Rising energy and food costs stoke some of this concern, as does the continued economic stimul...