In China, which happens to be the world’s second largest economy, factory gate prices in the month of May rose by 9% -- their fastest annual pace in over 12 years owing to surging commodity prices.
These numbers outline the global inflation pressure at a time when central banks and the governments across the world are trying to catalyse the post-pandemic growth – having lost one good year to the pandemic.
JPMorgan Chase & Co (NYSE:JPM), the only Wall Street bank to make it to the list of top five largest banks globally, has been “effectively stockpiling” cash and not using it to buy treasury bonds or other forms of investments because of the possibility that higher inflation will force the Federal Reserve to increase the interest rates.
The words of Mr Dimon seem to have been echoed by James Gorman, CEO of rival Wall Street bank Morgan Stanley. On Monday, Mr Gorman said in an interview to a TV channel that he also thinks that higher inflation may be lasting in nature and that the Federal Reserve could be forced to increase the interest rates earlier than expected.