How to play the rising prices theme

COMBATING INFLATION

Paul Burgin discovers the benefits of inflation-linked structured products.

Recent jumps in inflation have spooked investors but a handful of structured providers are developing straight inflation play products in response. The Retail Price Index hit 5.1% in January, increasing from 4.8% on the previous month due to fuel, gas and food price hikes, according to the Office for National Statistics. Now markets fear China, the rest of Asia and Latin America will have to raise interest rates to combat escalating consumer and factory input prices. Nervous reaction In reaction, nervous investors are asking their advisers and discretionary managers for ways to infl...