Inflation in ‘process of peaking,’ but still poses threat to investor portfolios, says Wells Fargo
Investors are watching closely for any signs that the surge in the cost of living during the pandemic may be starting to ebb, with Wells Fargo Investment Institute among financial firms pointing to possible relief ahead.
“Inflation is in the process of peaking out,” Scott Wren, senior global market strategist at Wells Fargo Investment Institute, told MarketWatch in a phone interview. The recent decline in prices of raw materials for finished goods may be a sign of that, he said, as the ups and downs in costs of finished goods typically follow raw-materials prices with a lag.
Raw-materials prices may have “peaked out,” Wren said, referencing a chart in a Wells Fargo Investment Institute report this week.