Financial Insights & Updates

Welcome to the August issue of Financial Insights and Updates. 

A sharp increase in inflation caused by rising costs of fuel, food and transport has sparked talks of an economic phenomenon associated with the 1970s and early 1980s: stagflation.
 
As war in Ukraine drives up the prices of commodities such as wheat and oil, exacerbating what is already a trend of rising inflation in much of the developed world, bank traders and other market commentators have highlighted stagflation as a potential global risk. And central banks don’t have the measures left in their kits to remedy the risk if growth stalls.
 
In our video this month, ‘Global Economic Prospects: Slowing Growth and the Risk of Stagflation’, the World Bank warned there were rising risks of stagflation as it cut growth forecasts and said the world economy could be headed for “a protracted period of feeble growth and elevated inflation”.
 

Our article ‘What is stagflation and what happens if it comes back?’ provides an explanation of stagflation and its potential impact on Australia – a must-read supplementing the video.
 
Other interesting articles this month include ‘You can break the pay-to-pay cycle’ where you might find tips to apply to your spending, and ‘Role-reversal – When parents are relying on you’ which deals with the delicate topic of aging parents who might need, but not necessarily want, help from their loved ones.

In signing off, please remember that we are always available to answer any questions or queries you may have and to come speak with us before making any major investment decisions.

Warm regards,

The Team at Nixon Financial Services Pty Ltd 

Feature Booklet- Global Economic Prospects: June 2022 | World Bank Group

(Please click on the image below to view the booklet)