Buy bonds to beat inflation

'No brainer'

In a year of memorable moments (by which I mean traumas), two financial events stand out, sharply rising bills and tumbling bond prices.

Whatever the causes of inflation, be it the war in Ukraine, the lifting of lockdown, the after-effects of Covid or fiscal folly, no-one opening an energy bill this month can be in doubt of its presence. Latest data from August for the retail price index (RPI) puts the year-on-year growth in prices at 12.3% and the consumer price index at 9.9%,  the worst since the early 1990s. Deutsche Bank: UK CPI will not return to target until early 2025 As the Bank of England battles to tame the inflation beast, interest rates have been hiked and more rises are coming. Bonds have sold off aggre...