Sagard expects sticky inflation as markets price in easing pressures
TLT•TLT•TLT•TLT•Sagard expects inflation to remain sticky, saying markets are prematurely pricing in easing price pressures and an end to monetary tightening. It points to oil, diesel and fertilizer costs, and a strengthening El Niño, as factors that could keep inflation elevated.
Sagard warned that markets are prematurely pricing in easing price pressures and an end to monetary tightening. It said higher diesel and fertilizer costs, alongside a strengthening El Niño, could keep food prices under pressure into 2027.
Sagard said oil prices reflect hopes for an unsigned peace deal, while replenishing emergency reserves would add demand. It said inflation-linked infrastructure, real estate with resetting rents and scarce physical assets could benefit whether central banks raise rates further or tolerate higher inflation.
