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.
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.
Share with us your feedback on BT's products and services