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How to prepare for return of inflation

Many different assets can provide some protection, but their ability to do so reliably varies. Optimal inflation hedging requires a diversified mix of asset classes.

Published Fri, Jul 14, 2017 · 09:50 PM

    POWERFUL interactions between domestic and global forces continue to suppress inflation rates around the world. Meanwhile, long-standing economic relationships - such as the linkage between labour-market tightness and labour compensation - have adjusted or broken down. Case in point: The persistent decline in the US unemployment rate - from 9.8 per cent in 2009 to 4.3 per cent today - has not resulted in commensurate increases in wages.

    An ongoing search for inflation

    So where has inflation gone? Unfortunately, we have only partial answers.

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