The price is right for inflation

Inflation is rarely out of the headlines these days, whether it is soaring petrol or gas prices, or the price of staple foods such as bread and rice. And this daily flow of news has heightened awareness among retail and high-net-worth investors of the potential for their wealth to be eroded. Michael Marray reports

Over the past five years chasing yield has been the goal for most institutional and retail investors, with inflation a consideration mainly for insurers and pension funds. But the inflation issue has now become important at both the high-net-worth and retail level.

Some investors are buying products that offer them a simple multiple of inflation. But most are playing the theme via other asset classes. They may be investing in commodities that are viewed as drivers of inflation, or in emerging