Pimco, Capital Group Say Era of Low Inflation Is Gone for Good

Both policy makers and markets have been surprised by how stubbornly high inflation has been, since it was initially thought to be a temporary side effect of the pandemic that would fade once economies reopened. On Wednesday, the UK reported that consumer prices increased at a faster-than-expected pace of 10.1% in July, the most since 1982. That surprised traders, who dumped 2-year government bonds, triggering a steep jump in yields.