Although inflation looks to be constrained in the near term, the same cannot be said for the medium to longer term inflation outlook. AME does not believe this is properly reflected in yields and interest rate forwards. Whilst higher unemployment and latent capacity will cap non-tradable price growth in the near term, it will be negated by higher import prices and demand created by the expected pickup in credit growth from 2012/2013 in particular.
展开▼
