Seasonally adjusted prices for inflation-linked bonds
Inflation is highly seasonal. Food and energy prices ensure that inflation is also volatile from month to month. One-off future inflationary events may be known about months in advance. These three factors apply to the consumer price index (CPI) measures used in the calculation of global inflation-linked bond (ILB) markets. They make it difficult to extract meaningful information from the prices of ILBs. In particular, they hide the trend rate of inflation, which is, arguably, the most valuable
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