Sustainable income has to be inflation proof - Baillie Gifford's Hay

The head of income research said changing workforce demographics, Covid and climate change were pushing prices higher, leading to investment strategy shifts. "For years we wondered if prices would even rise fast enough again to meet central bank expectations," Hay said. "But now above-target inflation is back in the headlines, and there's growing concern it may stay that way for a long time to come." Inflation is a significant risk to investment returns, he added. "For anyone relying on a fixed income, one or two years of higher inflation is a bit painful, but a prolonged spell can pr...