The volatility of inflation

Jason Britton, chief investment officer at T. Bailey, looks at the reasons behind inflation-related volatility

The resumption of quantitative easing in the US has been met with a mixed response from the markets with several informed observers commenting they are not sure whether to call it QE2 or Titanic. Managing money in these markets could be compared to sailing in the North Atlantic in heavy fog. We have had a good few weeks but the long-term economic future is very unclear. You need to have your wits about you to avoid sudden icebergs looming out of the mist. Much of the uncertainty comes from mixed messages in the economic data. Inflation is a key example, and closely related to the quan...