As we close out one of the most volatile periods for financial markets with simultaneous losses for both stocks and bonds, inflation is the clear culprit. Surging prices globally required central banks to play catch-up after insisting that prices would normalize naturally. That did not happen, and our PriceStats® reading of global inflation at 6.75% is confirmation of what we are facing. While it has been convenient to blame inflation on the war in Ukraine, there have been growing signs that price gains are spreading beyond just those goods impacted by the war and COVID-19 reopening challenges, with decades-high core inflation pushing consumer expectations higher.
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!["Family Photo", G7 Canada. Photo Credit: Government of Canada](https://images.investmentofficer.com/cdn/ff/5zR34v_-3Sr_lA_arvQMtciYbZdCVkkesFnUbGFiDQE/1756126319/public/styles/thumbnail/public/2025-08/_assets_ea689367_MediaGroupings_27_FAMILY%20PHOTO%20300_0.jpg?itok=O6v_PUce ""Family Photo", G7 Canada. Photo Credit: Government of Canada")
