Inflation Risk

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Inflation risk

Also called purchasing power risk, the risk that changes in the real return the investor will realize after adjusting for inflation will be negative.

Inflation Risk

The risk that the rate of inflation will exceeds the rate of return on an investment. For example, if the rate of inflation is 5% over a year and the rate of return is 3%, then the investor has effectively taken a loss even though he/she has made a profit in absolute terms. Inflation risk applies especially to fixed-return securities as there is no possibility that the rate of return will increase to surpass inflation. For this reason, some fixed-return securities are inflation-indexed, which means that their nominal returns change, while their real returns stay the same. See also: Treasury Inflation Protected Securities.

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Annuity Payment Option Bond Risk Capital Preservation Fixed Annuities Fixed Benefits Guaranteed-Dollar Annuity High-Premium Convertible Debenture Indexed Loan Last In, First Out LIFO Operating Exposure Preservation of Capital purchasing power risk Risk-Free Risk-Free Asset Riskless or Risk-Free Asset Tax-Exempt Security Triple Tax-Exempt			With the recovery still tentative, inflation risks currently low, and limited asset price increases so far, a near-term tightening of monetary policy would be premature for most countries,'' he added. IMF's No. 2 man says Asia to emerge from crisis sooner by Asian Economic News economy as many forecasters believe, which means medium-term inflation risks could be higher, a Federal Reserve official said on Sunday. Daily Wrap Up - Oct 11 by International Business Times - US ed. Niels-Henrik Bjorn Sorensen, Senior Analyst, Danske Bank Weekly Bank Research Center 07-06-09 Global QE, Global Inflation Stephen Roach, Head Economist, Morgan Stanley Inflation complacency: With headline inflation gauges in negative territory in many countries and the global economy only just emerging from the 'Great Recession', it may seem absurd or at least premature to worry about inflation risks. Bank Research Consensus Weekly 07-06-09 by Mena Report			Inflacion Inflacion de costo Inflacion de costos Inflacion de demanda Inflacion encubierta Inflacion importada Inflacion inercial Inflacion latente Inflacion salarial Inflacion subyacente inflation Inflation Accounting Inflation des couts inflation guard inflation hedge Inflation hors energie et alimentation Inflation importee Inflation inertielle Inflation larvee Inflation latent Inflation non corrigee Inflation par la demande Inflation par les salaires Inflation Premium Inflation Rate Inflation Risk Inflation Uncertainty Inflation-Adjusted Return Inflation-escalator clause Inflation-Indexed Securities Inflation-Indexed Security Inflation-Linked Certificates of Deposit Inflation-Linked Savings Bond Inflation-Protected Annuity Inflation-Protected Security Inflationary Gap Inflationary Psychology Inflazione Inflazione a due cifre Inflazione causata da aumenti salariali Inflazione da costi Inflazione dovuta all'incremento della domanda Inflazione occulta Inflazione strisciante Inflazione strutturale Inflection Point Inflexible expenses Informacion confidencial Information Agent Information asymmetry Information Circular			Inflation Indexed Bonds Inflation Indexed Securities Inflation Indexed Security Inflation inertielle Inflation larvee Inflation latent Inflation linked bond Inflation Linked CD Inflation Linked CDs Inflation Linked Certificate of Deposit Inflation Linked Certificates of Deposit Inflation Linked Savings Bond Inflation Linked Savings Bonds Inflation Measures Division Inflation non corrigee Inflation par la demande Inflation par les salaires inflation premium Inflation Protected Annuities Inflation Protected Annuity Inflation Protected Securities Inflation Protected Security inflation rate inflation rate Inflation rates Inflation rates Inflation Risk Inflation targeting Inflation Targeting Framework Inflation Targeting Regime Inflation theory inflation therapy Inflation uncertainty Inflation-Adjusted Inflation-Adjusted Inflation-Adjusted Inflation-Adjusted Inflation-Adjusted Rate of Return Inflation-Adjusted Rates of Return Inflation-adjusted return Inflation-Adjusted Returns Inflation-escalator clause Inflation-Forecast-Based Inflation-Indexed Inflation-indexed bond Inflation-indexed bonds Inflation-indexed interest Inflation-indexed interest Inflation-indexed interest Inflation-indexed interest Inflation-indexed interest Inflation-indexed securities Inflation-Indexed Security Inflation-Linked CD Inflation-Linked CDs Inflation-Linked Certificate of Deposit Inflation-Linked Certificates of Deposit

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