‘Foong on Finance': Inflation Is Imminent, Says Analyst

Could higher inflation be around the corner? “The general expectation is that inflation is coming. The question is when, and by how much,” says a research analyst at a U.S. ratings agency.

By Keat Foong, Executive Editor

Could high inflation be around the corner? And if so, perhaps that would provide added impetus to the current drive by investors to buy real estate.

“The general expectation is that inflation is coming. The question is when, and by how much,” says a research analyst at a U.S. ratings agency.

The annual increase in the Consumer Price Index is now 2.1 percent, which is still below the U.S. historical average inflation rate of 3.38 percent.

Given the massive amounts of money pumped into the economy by the federal government and now the rise in oil, commodity and food prices, it could be inevitable that higher inflation would arrive. The question, says the analyst, is “how can you not expect inflation to occur?” “It is already here. It is just not showing in the core numbers yet.”