The prospect of higher interest rates looms large.
New Zealand increased short-term interest rates to 8 per year. That's an awful lot of money which has subsequently found its way into Stock Markets, Real Estate, Commodities, Bonds and collectibles.
So when Central Banks come out and say that the world economy is on steroids they should know, they put it there. What they are really saying is that that the effect of their money printing is now finding its way into more visible consumer prices. Which means money printing is becoming less effective as it is being seen for what it really is - currency debasement.
Remember, the definition of inflation is not the increase in price levels but the increase in money supply.
