UK issuers unveil inflation-busters

Barclays has reissued its Commodity Select protected investment, targeting UK investors looking for an inflation hedge. The re-issue follows consistent rises in the Consumer Price Index (CPI), the annual inflation of which rose 0.3% between April and May this year, according to the Office for National Statistics.

The Barclays’ product offers exposure to a basket of 15 commodities divided into precious metals, base metals, energy and agricultural and livestock sectors. Investors receive 115% participation in the basket, with a 100% capital guarantee at the product’s five-year maturity. Food inflation alone hit 8.7% in May, according to the Office for National Statistics, while electricity, gas and other fuels have now reached 11.2% on the year. This represents an 8.3% rise on April’s figures. The high