Rising inflation driven by a stronger economy might mean higher interest rates, but it should also mean better corporate revenues and profits. Costs (raw materials prices and wages) might rise for companies but productivity gains and increased sales might offset this.

But if you get both inflation and a weaker economy, also known as stagflation, that’s the worst of all worlds. The world’s central banks will struggle to deal with that problem, because it’s theoretically not meant to happen.

Money Week