UK Asset Returns and Inflation
Document ID: 2004-340 (previously 2004/005)
Published on: 31st August 2004
Author: John Hibbert, Niall Cameron
The note compares the real annual equity and bond returns with the annual inflation rate from 1901 to 2003. Rising inflation tends to reduce both equity and bond returns although the analysis suggests that real bond returns are more sensitive to inflation then equities.
