William Blair: Inflation Accelerating

William Blair: Inflation Accelerating

By William Blair - If 2016 can be summed up as stable growth and rising prices, what does that mean as we look forward? With recent changes in governments on both sides of the Atlantic, inflation in the near term is more likely to accelerate.

Substantial Price Increases in the United Kingdom

In the United Kingdom, the pound sterling has sold off about 15% following the Brexit referendum, and several producers have begun to put through substantial price increases across the consumption spectrum. Large technology companies pushed through increases of 20% and greater on their products earlier in the fall, while others succeeded in raising prices by 10% across a range of white goods.

The public row between large food companies and grocery retailers over Marmite, a popular food spread, resulted in one large food company backing down from increasing the price on Britain’s quintessential food. What was less widely reported was that a smaller grocery chain quietly increased prices by 12.5%. Over time, others are sure to follow.

U.S. Policymaking: Highly Stimulative and Inflationary

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