What goes up..........

Transit airy?

One further indication that the pick up in inflation is not justified by any sustained pick up in demand is evident from the latest US air passenger numbers, although at a first glance, you could be forgiven for thinking that the recovery story looks promising:

However, if we look more closely, a different story emerges:

We seem to have ‘levelled off’ at only just over 2/3 of previous demand:

On a similar note, the weakness of the recovery is also evidenced in weakening employment data from America's manufacturing sector:

It could all change but so far there is no reason to expect that inflation fears reflect anything other than a supply shock.

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About the Author:

Paul Gambles is licensed by the SEC as both a Securities Fundamental Investment Analyst and an Investment Planner.

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