The Old Hand: inflation and deflation

In the last few months, when you went to your local drug store to pick up that important bottle of wine or filled your car up at local gas station, did you notice that the prices have been creeping up? Well, they have, and not just in one country: it seems, in fact, a global practice. This is what we call “Inflation”.

Only during the month of June 2021 in America, consumer price inflation rose to 5.4%, and for the same period in the UK it rose to 2.5% - which was also higher than predicted.

On a regular basis, Inflation normally occurs in a growth market. We anticipated with the onslaught of the Covid Pandemic that the world market growth would be in decline for some years to come. However, this does not seem to be the case.

Then, not only have we had to endure the heartache of Covid but now we find that inflation is attacking us everywhere. The thought of not having to endure inflation based on the fact that the Pandemic would possibly stunt growth and prevent inflation was a little hope in the overwhelming and devastating effects of Covid, but now it seems not to be the case.