Online Media Round Table Inflation
The highest inflation levels for decades fuelled by Covid-disrupted global supply chains, surging energy and other commodity prices triggered by Russia's war on Ukraine and the decarbonization transition, are presenting investors with fundamental challenges on how they protect the value of their investments. The Dutch Central Bank now expects inflation to reach 6.7% this year, the highest level since 1981. Much of this price pressure is proving more persistent than expected, spurring central banks go ‘all-in’ in their fight against inflation, but can they put the genie back in the bottle, engineering a successful soft landing, or will structural factors override this? Do inflation-linked bonds still offer value and a solution for Dutch pension funds? AXA Investment Managers’ Chief Investment Officer Chris Iggo and Head of Sovereign, Inflation and FX Jonathan Baltora discussed the market outlook the turbulent waters ahead, with Martin Sanders, Head of Pension Investments, looking at this from a Dutch institutional perspective.