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After falling back from its post-pandemic highs, inflation has started to accelerate once again. In our view, the global economy may have moved into a structurally higher inflationary environment, with important implications for investors. In this video, we explain why inflation could remain higher and more volatile than many investors expect. Policy activism, geopolitical fragmentation, ageing populations, deglobalisation, decarbonisation and the growth of AI infrastructure could all contribute to persistent inflationary pressures. For investors, the implications could be significant. Higher inflation volatility, structurally higher real yields and greater differences in inflation between countries may challenge portfolios built around the experience of the low-inflation era. The video explores why investors may therefore want to reconsider the role of inflation protection, including inflation-linked bonds and inflation swaps. Watch the video to hear our perspective, then read the full paper, The importance of inflation protection, for a deeper look at the forces reshaping the inflation outlook and the potential implications for portfolios. |
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