After years of low and non-existent inflation, growth is finally having its way on prices.
As the economy has expanded and demand has risen, inflation has finally begun to cross the critical two-percent mark. It’s the reason why we’ve had a string of Federal Reserve rate hikes over the last few quarters. And as a result, planning for inflation protection has once again taken center stage.
However, investors might want to rethink just how much inflation protection they are going to need.
According to asset manager State Street, there’s still a good chance that much more subdued rates of inflation will be the norm. If true, this would once again flip the conversation back. Investors might not need to take their old school rising prices playbook just yet.