Multi-asset managers top up on protection amid inflationary spike

CPI rises 1.5% in April

Multi-asset fund managers have been topping up on allocations to assets guarding portfolios against inflation, which is expected to spike globally over the coming months as a result of booming commodities prices, wage growth and the reopening of economies.

The Office for National Statistics revealed last week that the 12-month CPI rate rose by 1.5% in April, up from 0.7% in the previous month, driven by rising household utility, clothing, and motor fuel prices. The Bank of England (BoE) has recently forecast that inflation would gradually tick upwards towards its 2% target by the third quarter of this year in response to the economy emerging from lockdown. Roundtable discussion: The post-pandemic inflation conundrum for income investors It followed market turbulence earlier in May as the US inflation rate hit its highest level since ...