Inflation is here to stay

A world of chaos and uncertainty is a world of rising prices

Last month, both the US and the UK reported that inflation had risen to 3% in January 2025. In the US, this was the highest inflation rate for 6 months. In the UK, it was the highest rate for 10 months.

Economists in both countries described the January increase as a transitory phenomenon driven by contingent factors that will disappear over the coming months. And it is true that inflation is likely to come down over 2025, primarily because there is a good chance that the US will enter recession this year.

But the underlying factors driving higher prices are here to stay. Just take coffee.