Inflation

The highest dividend growth is seen when there is a sharp rise in inflation and grow least when inflation is stable, says Patrick Ryan at Lazard Asset Management.

Experts from RLAM, Legg Mason and other top groups give us their views.

ON ASSET ALLOCATION

Architas' Caspar Rock has bought exposure to physical commodities in the £33m Multi Manager Dynamic fund to hedge against rising inflation.

Fixed income stars Jim Leaviss and Ian Spreadbury warn rate rises now would be "near intolerable" for households and expect bank rates to hover around record lows.

COMPANIES STRONG AMID 'SLUGFLATION'

The UK government bond market has shown resilience in reaction to the Budget and inflation soaring to 4.4% in February, offering a safe haven for investors, says M&G's Mike Riddell.

The governor of the Bank of England has warned inflation could top 5% because of rising inflation expectations and higher commodity prices.

J.P. Morgan's Nick Gartside has revised his economic outlook to include a 15% chance of stagflation, as the UK posts 4.4% inflation for February.

BEATING INFLATION