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A new chapter: What are the implications of the recent extraordinary global macroeconomic changes for real asset investing in Europe?
Within less than 12 months, between January and November of last year, the recent era of ultra- low — and in some markets, negative — interest rates unwound spectacularly fast, as surging inflation forced central banks worldwide into a precipitous reversal of 15 years of loose monetary policy.
Soaring energy and food prices, exacerbated by the war in Ukraine, tight labour markets, lockdown-era supply-chain disruptions, and China’s zero-COVID policy, drove inflation to 40-year highs, peaking between last summer and autumn. Inflation catalysts also included the slow-moving accumulative impact on the purchasing power of fiat currency from 15 years of unchecked quantitative easing (QE). In the United States, headline CPI inflation topped out at 9.1 percent in the 12 months to June, according to the US Bureau of Labor Statistics data. In the euro zone and the United Kingdom, inflation peaked higher and later — at 10.6 percent and 11.1 percent, respectively, in the 12 month