What resurgent inflation really means for your ASX shares
Bernd Struben | May 14, 2021 12:38pm |
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And for good reason.
Inflation is to economies and share markets as salt is to a meal.
Most economists argue you want a little inflation (say 2–3%) to keep consumers and businesses spending, deflate mountainous government debt piles, and generally keep things ticking along. But if you add too much you spoil the broth. (Pardon the mixed analogies.)
The latest figures you need to know
Now, the latest inflation figures out of Australia remain subdued…for now. The headline consumer price index (CPI) rose 0.6% in the first quarter of the year compared to the previous quarter.
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