Tuesday, November 16, 2010

Morgan Stanley: Big Bout of Inflation is on the Way

Several indicators point to a huge wave of inflation in coming months, according to a series of charts published by Morgan Stanley and obtained by Business Insider.

The charts show:

• Inflation has surged in emerging markets during the past year – to about 5 percent from about 3 percent. The real problem isn’t China, but India, where inflation has almost reached double digits.

• Inflation also is on the rise in developed western nations, surpassing 3 percent in the United Kingdom, for example.

• The yield curve in the United States has steepened to record levels, with the 10-year Treasury yielding 233 more basis point than two-year Treasurys.

• Consumer expectations of inflation in the U.S. have risen to 3 percent from 2.2 percent in the last two months. (more)

No comments:

Post a Comment