Retail investors bank on hedge against inflation: Bloomberg

|By:, SA News Editor

Retail investors are putting a lot of money into securities that hedge against the risks of rising price pressures in advance of a consumer price report by the U.S. Labor Department on Tuesday, Bloomberg reports.

Last week, a record $1.2B flowed into the top 10 exchange-traded funds focused on Treasury Inflation Protected Securities--or TIPS--according to a JPMorgan Chase analysis of data going back to 2005.

May's consumer-price index is expected to climb 2.7%, fed by rising gasoline prices, according to economists forecasts. Core CPI is seen up 2.2%, the most in more than a year, Bloomberg says.

The stronger the inflation growth, the more likely that the Federal Reserve will boost the target rate range by 25 basis points on Wednesday.

ETFs: TIP, VTIP, SCHP, STIP, IPE, STPZ, LTPZ, TIPZ, TIPX, TDTF, TDTT, PBTP

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