Inflated or deflated?
With rising inflation making headlines around the globe, inflation derivatives dealers are seeing trading volumes pick up, but report surprisingly subdued interest from new investors looking to hedge their liabilities. Peter Madigan reports
As the credit crisis rumbles on, inflation has announced itself as the next major concern for central bankers across the globe. According to figures from the US Bureau of Labour Statistics, annual inflation in the US, as measured by the headline consumer price index (CPI), hit 4.2% in May. It's the same picture across the Atlantic. In the UK, the retail prices index (RPI) climbed to 4.3% in May, up from 4.2% in April, while the harmonised index of consumer prices for the 27 countries of the
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