Barings warns of inflationary threat

The firm sees this as the next phase in the economic cycle and recommends investors consider a number of sectors, including inflation-protected bonds, emerging market commodity producers, gold, alternatives and currencies. Percival Stanion, head of the Multi-Asset Group at Barings, said: "For many years, inflation has been quiescent. The combination of prudent monetary policy under inflation-targeting central banks, the effects of globalisation on import prices and wage levels in the Western economies, and gradual improvements in productivity in countries such as Japan and Germany, kept p...