An era of high inflation has arrived

In recent weeks investors had started to bet on signs that inflation may be peaking – but we’re in a new economic age. Expect high inflation to be here for some time to come.

People in an American supermarket
US consumers are still coping with rising interest rates and higher prices
(Image credit: © Gerardo Mora/Getty Images)

In recent weeks investors had started to bet on “firm signs that the inflationary peak is in sight”, says Nils Pratley in The Guardian. “We’re not there yet.” Annual US inflation hit 9.1% in June, the highest level since 1981. The price rises were driven by soaring energy prices, up 41.6%, the biggest jump since April 1980. Annual rises in food costs, up 10.4%, and shelter, up 5.6%, also registered new multi-decade highs. UK consumer price inflation hit a new 40-year high of 9.4% last month.

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Markets editor

Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019. 

Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere. 

He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful. 

Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.