Anthony Rayner: The inflation paradox

Cyclical upswing will turn

clock • 4 min read

Technology disrupters, labour markets and debt are muddying the economic waters, says Anthony Rayner, but markets still underappreciate what happens when central banks start to remove, rather than add, liquidity

Some of the most renowned economic theories suggest that persistently low unemployment, strong economic growth and a very expansive money supply should feed through to inflationary pressures. Today's environment is much different, however, as a number of structural forces have muddied the economic waters. Technology disrupters, such as Amazon and Uber, apply downward pressure on consumer prices and wages. This pressure is significant, as these businesses tend to be large monopolies that are growing materially and, in the case of Amazon, are smashing down barriers to entry to new sectors....

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Fahad Hassan: When good news becomes an inflation problem

Fahad Hassan: When good news becomes an inflation problem

'Markets have been adjusting to the risks through valuations all year'

Fahad Hassan
clock 29 September 2026 • 6 min read
Healey promises 'new age of industrialisation' ahead of Budget

Healey promises 'new age of industrialisation' ahead of Budget

Keeps quiet on personal taxation, pensions or savings at Labour’s conference

Isabel Baxter
clock 28 September 2026 • 2 min read
MPs warn policymakers to stop using OBR as scapegoat for tough fiscal decisions

MPs warn policymakers to stop using OBR as scapegoat for tough fiscal decisions

Treasury Committee report

clock 23 September 2026 • 2 min read