Inflation

PIMCO has launched an Inflation Strategy fund for Mihir Worah in response to the threat of rising inflation across the globe.

With Japan having announced a long-awaited programme of aggressive easing policies this morning, Artemis Global Select manager Simon Edelsten details four myths about investing in the country.

UK CPI inflation rose from 2.7% to 2.8% in February as rising energy prices pushed the reading to its highest level since May of last year.

While markets are nearing - or passing through - nominal highs, in reality, UK shares would need to climb much higher just to meet inflation-adjusted pre-crisis highs of 2007.

The Bank of England's Monetary Policy Committee will tolerate missing the inflation target for the next two years in order to support the UK recovery, said Bank governor Mervyn King.

UK CPI inflation stood at 2.7% for the fourth consecutive month in January, but fears over longer-term forecasts sent sterling to a six month low in early trading.

The incoming Bank of England governor Mark Carney has said "the bar for change to the monetary framework is very high", warning any change to the current interest rate target could damage the economy.

The Bank of England's Monetary Policy Committee (MPC) has said inflation may remain above the 2% target for the next two years, in part due to sterling weakness.

Schroders is preparing to add a sterling-hedged share class to its £797m Tokyo fund as investors become more concerned about downside risk to the yen.

Incoming Bank of England Governor Mark Carney intends to place economic growth at the top of his priority list when he takes on his new role.