Inflation is a hot topic concerning investors the world over

Friday 10 June 2022

Amundi Convictions

AMUNDI CONVICTIONS

In the US, inflation is driven by rising wages and higher commodity prices; in Europe, it's been driven by commodities.

Europe in particular is experiencing an energy crisis, which has been exacerbated by the Russian invasion of Ukraine. The impact of this has led to an increase in rising commodity prices coupled with a supply issue. In the medium to long-term, structural factors such as the energy transition will also add to inflationary trends. This, coupled with the limited production capacity of renewable energy and high demand for commodities, will increase energy costs and boost the prices of commodities linked with the green transition.

Source: Amundi Asset Management as at April 2022.

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