The Volatility of the Energy Complex

Sonia: It's all about the hiking cycle, and we should expect more volatility ahead. James: I think it's like a series of dominoes. We have an energy shock, which is increased inflation. The next two dominoes are workers wanting higher wages and companies passing on higher costs through to consumers. On balance, we think they'll still hike again, because inflation is not fully squeezed down with the system.