It’s the worrisome byproduct of a healthy economy: inflation.
Just about every nation on earth is now growing. Europe and Japan finally pulled out of their doldrums. And the United States economy, which continues to chug along, could get some extra juice from the tax cuts and other deficit-increasing moves by the government.
To economists, executives and investors, there can be too much of a good thing. The fear now is that inflation will start to rise more quickly, potentially crimping global growth or forcing borrowing costs higher. That prospect spooked the markets earlier this month, briefly sending stocks down more than 10 percent before investors recovered their nerve.
While still low, prices are starting to rise, in what would amount to a major shift if it persists. Higher prices for rents, gasoline, medical care and food helped drive prices up 2.1 percent in the 12 months that ended in January.
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