Why inflation will be higher and more problematic

October's reading up again at 6.2%

After 40 years of declining inflation and interest rates, the direction of travel appears to be changing, due to new central bank policy priorities, China’s strategic reorientation, the energy transition, pressures in supply chains and labour’s increasing bargaining power in negotiations over the spoils of growth.

The tilt towards supply-side, cost-push inflation in this dynamic will likely pose a challenge to central banks. Uncertainty over how central banks choose to navigate a changing inflation environment...