Higher inflation is here to stay, according to veteran investment strategist David Roche, who described the view that higher prices were temporary as “most unlikely.”
Speaking on Wednesday, Roche — who correctly forecast the demise of the Soviet bloc, the fall of the Berlin Wall and the global financial crisis of 2008 — disagreed with those economists who believe the current spike in inflation is transient.
It comes as markets eagerly await Thursday’s U.S. consumer price index for May to assess the extent and longevity of the inflation surge, and the likelihood that the U.S. Federal Reserve will have to begin conversations about tapering down its monetary stimulus program.
Here’s why Roche, president and global strategist at Independent Strategy, thinks higher inflation is a longer-term phenomenon.
