Multi-asset managers top up on protection amid inflationary spike

CPI rises 1.5% in April

Mike Sheen
clock • 4 min read

Multi-asset fund managers have been topping up on allocations to assets guarding portfolios against inflation, which is expected to spike globally over the coming months as a result of booming commodities prices, wage growth and the reopening of economies.

The Office for National Statistics revealed last week that the 12-month CPI rate rose by 1.5% in April, up from 0.7% in the previous month, driven by rising household utility, clothing, and motor fuel prices. The Bank of England (BoE) recently forecast that inflation would gradually tick upwards towards its 2% target by the third quarter of this year in response to the economy emerging from lockdown. It followed market turbulence earlier in May as the US inflation rate hit its highest level since 2008 at 4.6%. Both the BoE and the Federal Reserve have assured markets that they have...

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