After a couple of decades of falling and low inflation, expectations from policy makers have been that this state will continue for the foreseeable future. However, COVID-19 is causing massive disruptions to supply chains and shifting spending patterns. The result has been a spike in inflation and whle the official line has been that this spike will be transitory, pressures continue to build as these claims wear thin. How long will higher inflation persist, how do you protect your portfolio from it and what do you do if central banks do a U-turn and try to control it?
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