Emerging markets key to beating inflation - Fidelity

Amit Lodha says prices are likely to surge over the next three to five years as Western Governments turn to inflation to tackle high debt burdens and economies are flushed with money from fiscal stimulus programmes. "I do not have a strong view on whether we will see inflation this year or next year, but on a three to five year view I believe we will have an inflation problem," he says. Lodha's research - based on the returns of different pan-European sectors during inflationary periods since the 1970s - suggests basic resources and oil & gas perform well in a high-inflation environme...