Inflation

Gold could be the best asset class to own in 2013 if inflation starts to pick up following major stimulus programmes from central banks, Fidelity's global strategist Andrew Wells has said.

Sam Vecht, head of BlackRock's emerging Europe equity team, has upped his weighting to Russia by 15% in recent months, on the view the country's equity market could significantly re-rate.

UK inflation will not be allowed to fall back to its 2% target because Mervyn King and his colleagues are keen to prevent a disinflationary spiral, according to leading fund managers.

The drop in inflation announced yesterday has paved the way for another round of quantitative easing by the Bank of England as early as next month, reports suggest.

The UK's inflation rate posted another surprise drop in May, falling to 2.8%, as the lack of activity in the UK continues to bring prices down sharply.

The Office for National Statistics has proposed a new inflation measure to replace the Consumer Prices Index (CPI) which would include housing costs in the calculation.

Stubbornly high developed world inflation is providing investors with an opportunity for diversification, according to Fidelity's Andy Weir.

Inflation in the UK dropped in April, beating the consensus forecast.

Sterling has fallen against the dollar today after a dovish quarterly inflation report from the Bank of England cut growth forecasts and left the door open to further QE.

Former Monetary Policy Committee member Andrew Sentance does not expect the Bank of England to unveil more QE tomorrow, and said this is the right course of action to avoid triggering higher inflation.