Fortunately not. A prolonged re-run of 1970s-style price inflation looks about as likely as a permanent return to the dark days of flared trousers.
Fundamentals may be pointing the way, but recent price rises are overdone. The whiff of hot money seeking a more profitable home than the dismal bond or equity markets is unmistakable.
The reaction of the coffee price - up 77 per cent in two weeks - to a very bad Brazilian frost, looks overdramatic given the as-yet-unquantifiable effects of the cold snap and the probable slowing of retail demand as prices rise.
Just as good news in a speculatively driven market pushes the price up to unjustifiable heights, bad news can have an equally dramatic depressant effect.Reuse content