Corporates look to tackle unhedgeable inflation indexes
As inflation risks mount for corporates, some are finding their exposures are linked to niche indexes
Fearing another round of rapid increases in inflation, several European corporates are hoping to hedge the inflation risk referenced in their supply contracts, but many are finding their exposures reference niche inflation indexes that are difficult to hedge.
European inflation began to rise at the beginning of 2021 after a decade of rock-bottom levels. It continued to climb into 2022, fuelled by the outbreak of the war in Ukraine, pushing the eurozone’s Harmonised Index of Consumer Prices to 10
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