Inflation matters. If inflation remains stubbornly high, it is hard to foresee the substantial drop in interest rates that markets are pricing in over the next two years. The implications are wide-ranging. The outlook for the economy and financial markets depends heavily on the path inflation will take from here. In an in-depth analysis, APG’s Expert Strategist Charles Kalshoven talks about how an APG model helps analyze inflation dynamics and gives an insight into where the main risks might lie.