Inflation is not dead

Consumption and record low levels of inventories means that inflation is not dead, according to Mark Capleton, strategist at Barclays Capital. He says: 'There has been a coming of age in the global index linked gilts recently. Every markets' breakeven inflation rate is at least 2%, which justifies the commitment to the product from government issuers.' It is a maturing sector, signaling a move away from systematic cheapness, especially in the UK. He adds: 'We are resisting the temptation to sell the asset class just yet - now is the time to be a little greedy.' It is difficul...