The main talking point in recent months has undoubtedly been the recent sharp increase in global inflation, driven largely by an unleashing of pent up demand and acute supply shortages. Price growth has continued to far exceed expectations of both central bankers and economists. Citibank’s G10 Inflation Surprise index, for instance, rose to a fresh record high in December.
The detection and aggressive spread of the omicron variant of COVID-19 has triggered a few jitters among market participants. A number of countries, particularly in Europe, have tightened restrictions over the holiday period, which has raised a few concerns over global growth. The likes of Germany and Portugal have introduced post-Christmas curbs, while the Netherlands remains under a fairly strict lockdown.