Warning against fixed interest complacency

The fixed interest market has become too complacent about rising inflation figures, according to Sim...

The fixed interest market has become too complacent about rising inflation figures, according to Simon Ward, economist at New Star. Ward said the market has responded to the highest monthly inflation figures since 1996, issued in July, by concluding it is the energy price alone driving the higher figures. "The consensus has been that the increase is energy related and that inflation will fall back once energy prices stabilise but I think that might be a little too complacent," he said. Ward cites figures suggesting inflation was at 1.1% in July 2004 and has risen to 1.9% by July 2005 ...