Inflation is top of mind right now for many consumers, businesses and investors. Responding to a recent Bank of America survey, asset managers around the world agreed thatinflation is the number one market risk,displacing COVID-19 for the first time since February 2020.
Another survey conducted this month found thatover three quarters of Americanswere either very or somewhat concerned about inflation. Perhaps not surprisingly, younger Americans who have not yet reached their peak earning years were most worried.
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Loyal readers knowIve been writing about this topic a lot lately.There are many signs that inflation is already here: Commodity prices are up. Home prices are up. Energy prices are up.Shipping rates arewayup.Used cars and trucks arethrough the roof.
And the trend is only going to accelerate as social distancing is relaxed and the economy steadily returns to normal. Last week, the Department of Labor reported that initial jobless claims fell to their lowest level in a year. People are starting to travel again. Last Sunday, March 21, more than 1.5 million people boarded commercial flights, the most since lockdowns began.