Inflation will be in the crosshairs Wednesday as investors digest the latest Consumer Price Index. The reading may be one more sign that inflation remains a problem that isn't going away.
It's a tricky situation for investors looking for protection, but there are some good ways to get it.
Treasury Inflation-Protected securities (TIPS) are one option with "real" yields now at multi-decade highs. Beyond TIPS, analysts suggest commodities, infrastructure, and other assets that can hedge against rising prices.
While inflation is down sharply from its 9.1% peak in 2022 — a supply shock due to the Covid pandemic — it's still well above the Federal Reserve's 2% target. The headline Consumer Price Index is expected to hit 3.6% in September, partly due to rising energy costs stemming from the war with Iran. The Personal Consumption Expenditures index, the Fed's preferred gauge, was at a 3% core rate in August.
Americans' inflation concerns are also rising. The New York Fed's Survey of Consumer Expectations showed the one-year inflation outlook in September climbed to 3.9%, its highest level since May 2023.