Decarbonization, deglobalization and demographics will help keep inflation higher than historical standards.
Tim Pickering was featured in a Dec 31st 2023 Special to the Financial Post.
"We believe we are on the doorstep of a shift where inflation is clearly not transitory nor persistent, but structural.
The inflation migration has likely only started in commodities following generational catalysts. It is being led by scarcity of resources and workers as demand by the developing world and “build back better” of rich nations exceeds the delicate and narrow supply margin.
Whereas China dominated the narrative of the early 2000s commodity cycle, the three Ds and India will likely lead this decade’s cycle. The demand for commodities and wage pressures is a longer-term shift that can’t be ignored."