If you want to know where inflation is going next, don’t look at port bottlenecks or used-car prices or computer chip shortages. Instead, look at the resolutions that came out of COP26, which has effectively baked in an energy transition that is as expensive as it is urgent.

That’s the message from veteran US investor Larry Jeddeloh, founder of The Institutional Strategist, and economist Julien Garran, partner at British group MacroStrategy Partnership, who argue that the desire of governments to tackle climate change and inequality has ushered in the start of a new, inflationary cycle that will last long after the current supply chain squeeze eases.