Stock markets have been pricing in the anticipated end of inflation for the last little while. Is Mr Market right?

Mr Market is always right, correct? Always right, eventually. Like Manuel said, “Eventually!”

In the meantime, various central bankers around the world, including both heads of the US Fed and the Australian RBA and even the OECD, have been at pains to point out this exuberance may be misplaced. Inflation is not going away and interest rates are not going to fall any time soon, they say.

They are well positioned to know since they have real time access to information about the money supply.

The December quarter consumer price index rise was below expectations of many commentators but the risk is rising that the March quarter will reverse that. Mr Market may just be a little early with optimism at this stage.