Markets have been slow to embrace high for longer inflation (chart). Forecasting inflation is hard in normal times, a lot harder — when structural megaforces are overlaying cyclical forces and pandemic distortion (chart).
Think about:
->Ageing Population and related greater healthcare and social security spend;
->Geopolitcal Fragmentation and related supply chain reconfiguration and greater defence spend;
->Low Carbon Transition and related series of supply shocks;
—> ...