Tony Dolphin: Inflation could become entrenched

Henderson economist Tony Dolphin has issued a bearish first-half commentary stating a ‘perfect storm'...

Henderson economist Tony Dolphin has issued a bearish first-half commentary stating a ‘perfect storm’ has hit markets and inflation could become entrenched. But if this proves to be a normal market cycle then inflationary concerns should abate by the end of the year and central banks will be able to issue much-needed rate cuts. “The first half of 2008 was an awful one for financial markets,” he said. “All major equity markets recorded double-digit falls and bonds fared a little better but returns were poor. “The oil price has risen to new record highs around $145 a barrel and there h...