Is inflation the real risk to clients?

With the sovereign debt crisis in full maelstrom and the bailout of Dexia bank unlikely to be the last of its kind, the threat of inflation would seem to be a long way from many people's minds.

But it is clearly enough of an issue for M&G to organise an inflation conference in London last week to discuss the topic. The event was not just a platform to promote the group’s UK Inflation-Linked Corporate Bond fund, launched almost a year ago, but to have a genuine debate about the real and imagined threat of inflation. In this time the government has moved its benchmark for inflation for linking to benefits and pensions from RPI to the lower CPI, which trims a little bit off the nation’s bill. As a speaker from Income Data Services pointed out, CPI may well become the benchma...