The Globe and Mail reports in its Thursday edition that rising inflation is no reason to panic. The Globe's Tim Kiladze writes that growing economies are good things. The fear, it seems, is that inflation will eat into corporate profit. Central banks raise interest rates during inflationary periods, which boosts the discount rates used when modelling stock valuations. There is an inverse relationship between these rates and the stock market, meaning share prices should, theoretically, fall when the rates rise. Higher interest rates are likely to hurt mortgage borrowing, which should slow housing starts and sales. All legitimate concerns. Both Canada and the United States, however, are so very far from fretful inflation levels. Two per cent is what both the Bank of Canada and the Federal Reserve have been hoping for. Rising inflation also signals a stronger economy -- which should result in more consumer spending. Since 1971, the S&P 500 has climbed, on average, about 20 per cent as rates rise, according to S&P Dow Jones Indexes. The root problem underlying the recent swings is that investors got complacent, especially in the U.S., where the S&P 500 rose an incredible 19.4 per cent in 2017.