Inflated demand

Inflation-linked products are in high demand, from the retail side as well as from pensions and insurance funds. Laurence Neville analyses the reasons behind this trend

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It is an irony often noted that during periods of low inflation and a fairly benign outlook for future inflation, the demand for inflation-linked products has rocketed. While most developed countries have experienced a period of historically unprecedented price stability, a wide range of investors – from central banks and private banks to traditional assets managers – have found inflation-linked assets increasingly attractive.

The explanation is simple: according to Barclays Capital research

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