When inflation gets going, investors need a decent hedge - and commodities are a good answer.
In recent months inflation has picked up sharply and is set to continue rising in the near future amid a stuttering economic recovery.
Mark Bolsom, head of UK trading desk at Travelex commented: "Inflation is to continue rising, as the pound continues to depreciate in value against a basket of currencies. Long-term inflation forecasts are very dependent on the policy-makers ability to bring it under control and at the moment they are unable to use traditional inflationary control measures because they don't want to choke recovery in its infancy."
Latest figures from the Office of National Statistics show the headline rate of inflation hit a 14 month high in February. Its rapid rise to 3.5% - the peak predicted by the Bank of England - has fuelled fears that it will prove stickier than expected and fall back to the government's 2% target more slowly.
If this is the case, investing in commodities could prove a smart move.......more detial
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