Société Générale's chief strategist, Albert Edwards, has issued a stark warning that double-digit inflation could return, citing structural shifts and ongoing global imbalances.
His remarks follow recent data showing US inflation rising to 3.8% in April 2026, the highest level in nearly three years.
Edwards emphasized that energy costs and supply-side disruptions are key drivers of the trend, with potential implications for central bank policy and asset valuations.
Edwards emphasized that energy costs and supply-side disruptions are key drivers of the trend, with potential implications for central bank policy and asset valuations.
Markets have responded cautiously, with investors recalibrating expectations for future monetary policy.
The 10-year Treasury yield edged higher, reflecting increased pricing of inflation risks.
Equity markets showed mixed reactions, with defensive sectors gaining traction as investors reassess risk exposure.