Fund managers have much to fear from inflation

Big growth: The ‘Fearless Girl’ statue faces the New York Stock Exchange. The amount invested in regulated funds globally grew to US$63 trillion (RM263.84 trillion) last year from US$28 trillion (RM117.26 trillion) in 2011. — AP

CENTRAL bankers might sound relaxed, but inflationary pressures are quickly rising, and not just in the United States.

For example, more manufacturers say they are paying higher prices for materials than any time since 1979, according to the Institute for Supply Management’s report for June. If that wasn’t problem enough, central bankers are still too focused on preventing deflation, which means that whenever they act it will surely be too little and too late.