Wealth managers at Barclays are stepping away from equities and telling their clients to prepare for central banks to have difficulty controlling inflation.

In a strategy note released on Saturday, the bank's wealth management arm, Barclays Wealth, said inflation will not peak until at best the end of this year.

"Oil prices and inflation are unlikely to fall back sharply, and there are potentially severe problems stemming from wage/price spirals in some of the major developing economies," wrote Michael Dicks, head of research and investment strategy.

"The outlook looks increasingly gloomy for next year, and Barclays Wealth has reduced its overall equities overweight," he added.

The reduction was particularly focused on European stocks, including Britain. "Better US consumer spending news should allow US equities to regain some ground soon," Mr Dicks wrote.

Barclays Wealth remains short on fixed income, which tends to get hurt in inflationary times.

The wealth management firm trimmed its global economic growth forecast to just under three per cent next year from a previous estimate of just over three per cent.