Industry WIKI

Inflation hedge is an asset, contract or strategy that aims to preserve purchasing power when the general price level rises (that is, inflation). Definitions differ. Research separates expected inflation, which may already be priced, from unexpected inflation which is an unanticipated change. The effectiveness of any hedge depends on horizon and regime. Over twelve-month horizons some as

Inflation-indexed bond is a debt security whose cash flows are linked to a published price index so that the value of principal, and often the coupon, adjusts for inflation. The instrument is also called an inflation-linked bond or a linker. Designs vary by market. Examples include Treasury Inflation-Protected Securities in the United States and Index-linked gilts in the United Kingdom.