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Everyone is going crazy about inflation. But will current elevated levels be sustained? Not likely. Post Covid-19, secular factors such as debt levels and demographics provide even stronger headwinds against inflation than the preceding decade ever did. In developed economies such as the United States and Australia, Consumer Prices averaged circa 2.00-2.25% this century. Current market inflation expectations for the next 10 years suggest CPI of 2.5%. That’s price stability, not inflation. Central Banks have created some room to allow inflation to run a little higher than traditional targets, but their aims are the same. In the end, it is prudent to consider the risks of persistent high inflation, but the means is not to flip portfolio asset allocations in response to the recent euphoria. Rather, asset allocators need to focus on and set their portfolios for the underlying regime of price stability.