The escalation of inflation: How investors are protecting themselves

Fears of a possible prolonged period of deflation in some parts of the world last year have given way to concerns that inflation will gain pace in 2010. Credit looks at how realistic these worries are, and the implications of higher inflation for the credit market.

Sentiment changes fast in the world of finance. For much of 2009, deflation was the hot topic among credit investors as countries including the US, Japan, China and France reported falls in their respective consumer price indexes. But