Sticky Inflation and Energy Volatility: Positioning in the Macro Regime
Rising energy prices and sticky inflation are shifting the outlook. How to use the Macro Regime and Economic Monitor to adapt investment strategies.
Article generated with the assistance of artificial intelligence from the week's economic news, with automated content verification.
The Impact of Energy on Macro Dynamics
Recent geopolitical tensions and the resulting volatility in energy markets are complicating the global disinflationary narrative.
This supply shock risks anchoring inflation expectations at elevated levels, forcing policymakers to maintain restrictive financial conditions despite growing risks to growth.
Taking the Economy's Pulse with the Economic Monitor
Our Economic Monitor captures these shifts in real-time, showing a deterioration in liquidity indicators alongside renewed pressure on input prices.
This nowcasting tool allows us to identify transitions between different phases of the economic cycle early, before they are reflected in lagging official data.
Positioning in the Macro Regime
The current data mix is pushing economies toward specific quadrants of our Macro Regime:
This content is for information and research purposes. It does not constitute personalised financial advice or an investment recommendation.