Introduction

Just a couple of months ago, talk of further rate cuts was still bandied around, certainly in the UK and the US. Financial markets were under pressure, liquidity had dried up and house prices were sinking. Today, the overwhelming consensus is that the next move, in Europe and the US, will be up. Scan the headlines of any daily paper and the reason should jump out at you - inflation is rising.In theory, this should be good news for inflation traders. But the strong hike in consumer prices has