The UK is sticking with a flawed measure of inflation, much to the relief of bond fund managers. But the asset management industry’s victory may be short-lived as pressure will mount for index-linked bonds to start using a lower inflation marker.
In a great day for TLAs, CPI, RPI and the IMF’s forecast for UK GDP have all dropped dramatically.
Legal & General unveils its second five-year structured deposit bond.
Jubilee Financial’s latest structured product is based on how the FTSE 100 and the RPI perform over the next six years.
Record levels of CPI inflation may have been reached but at the same time there are distinct signs that this a trend downwards is just around the corner.
CPI inflation stayed at 4.5% in May and RPI at 5.2% as core inflation actually fell.
