Inflation Outlook: So Many and Contradictory Forces on Inflation

An outlook on growth and inflation is the starting point for all capital market assumptions, strategic asset allocation, tactical investment strategies and portfolio construction. There are many factors impacting inflation - cyclical or structural issues, the timing of their impact and whether it is inflationary or deflationary, and if inflationary then ‘good’ or ‘bad’ inflation. This research analyzes some key issues to identify the net impact and the most probable inflation outlook along with implications for portfolio construction.