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    The spectre of inflation

    Jul 09, 2021 3 minutes

    What’s happened?

    The spectre of inflation has risen from the grave and investors are getting spooked. In the UK, the rate of consumer price inflation rose to 2.1% in May, up from 1.5% the previous month and continuing a surge from a low of 0.3% last November. That’s a big rise in just six months. In the US it’s even higher – 5% in May compared with an average between 2010 and 2020 of 1.7%. In the eurozone, it’s 2%, but the Bundesbank predicts that in Germany it will be 4% by later this year; politicians

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