Since the financial crisis more than a decade ago, a broader uptake of technology and an ageing population have depressed wage growth, helping to keep inflation at low levels.
Now, central banks are contending with a sudden spike in consumer prices.
“Inflation hits at an individual level. Individuals, businesses, cities, countries are experiencing it in different ways,” Mr Nuzum said in an interview on his first trip to Australia since the pandemic began.
The sudden onset of rising consumer prices has pushed large institutional investors and also Mercer itself to look internally for staff with experience in periods of inflation.
“Outside of Brazil and a few other countries there is no-one who has dealt with inflation in their careers,” he said. “You have to go back to folks working in the 1980s.”
The big focus ahead was how central banks would respond and whether their efforts, especially those of the Fed, were too late given…
