Overshoot, stabilise or fall back: Where now for global inflation?

Concerns 'overstated'

Bond fund managers have urged investors not to overreact to headline inflation figures, arguing global inflation is not "as rampant or immediate" as the market response suggests.

An increase in the cost of food and fuel pushed UK inflation in February to its highest level since September 2013 at 2.3%, overshooting analyst expectations of 2.1% and the Bank of England's (BoE) inflation target of 2%. This month also saw the US Federal Reserve combatting rising inflation with its third interest rate hike since December 2015, taking the base rate up to 0.75%-1% and hinting at two further rate rises this year. However, Mike Riddell, UK fixed income portfolio manager at Allianz Global Investors, does not believe the world is heading into a global inflationary environ...