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By Jonathan BALTORA, Head of Sovereign, Inflation and FX, Fixed Income, AXA IM
While the war in Ukraine has pushed many commodities prices higher, inflation was already about more than only food and oil, with core Inflation numbers at their highest point in decades in many advanced economies. We prefer short-term inflation-linked bonds and do not believe that tighter monetary policy is a major risk to this strategy.
Inflation forecasts keep being revised higher and the timing for peak inflation keeps being pushed into the future.
While a year ago US inflation was expected to peak at 3.5% during summer 2021, today it is now expected to reach close to 9% before summer 2022. Inflation forecasts have been...
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