US inflation remains above the Federal Reserve's target, and investors are weighing TIPS, commodities and other assets for protection as the latest CPI approaches.
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01Summary
- 01US headline Consumer Price Index is expected to hit 3.6% in September, while core PCE was 3% in August.
- 02The New York Fed's one-year inflation outlook rose to 3.9% in September, its highest level since May 2023.
- 03The iShares TIPS Bond ETF is down 1.16% year to date, even as the 10-year TIPS yield has risen to 2.87%.
- 04Analysts cited short-term TIPS, commodities, infrastructure, gold and REITs as ways to hedge inflation.
- 05PIMCO's inflation response multi-asset fund holds TIPS, commodities, gold and real estate investment trusts.
02Why it matters
Inflation is still shaping returns across bonds, commodities and multi-asset funds, so the story affects how investors think about preserving buying power. It also matters because higher rates and real yields can hurt long-duration assets even when inflation protection is the aim.
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