Fears over future inflation mount

Inflation protection is at cheapest levels in years; investments may also be attractive

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The launch of a variety of fiscal stimulus packages by Asian and western governments, combined with quantitative easing by some central banks, has renewed concerns about the risk of significant increases in future inflation rates around the world. Australia, China, Japan, Hong Kong, Malaysia and Singapore have all unveiled substantial stimulus packages in a bid to prevent short-term economic output from nosediving. China alone is injecting 4 trillion renminbi ($585 billion) into its economy.

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