Could inflation be coming in 2021?

Ah inflation… it’s not a ‘problem’ we hear too much about these days. Well, at least not in the way we used to. I’m just old enough to remember the Reserve Bank of Australia (RBA) raising interest rates ahead of the 2007 election over worries that inflation was running rampant. We haven’t heard any of those kinds of concerns in the 13 (soon to be 14) years since.

With the Australian (and global) economy still battling the recessionary effects of the coronavirus pandemic, inflation doesn’t look to be a problem any time soon either.

Traditional economics tells us that inflation is usually a product of an economy ‘growing too fast’, of tight supplies of production inputs such as oil, iron ore and labour resulting in…