Inflation

FTSE100 companies' median liabilities jumped about 20% last year due to changes in accounting assumptions, Mercer research reveals.

The consumer price index of inflation eased in May to 3.4%, down from 3.7% in April, according to the Office for National Statistics.

Accounting surveys by KPMG and Hymans Robertson - both published last week - found increases in inflation assumptions have increased markedly but are still failing to keep pace with market assumptions.

Toby Nangle questions the Treasury's policy of holding back supply of inflation-linked gilts

Sponsors of UK defined benefit schemes have made more progress in reducing risk than their counterparts in the US and Canada, a consultant says.

Lynn Strongin Dodds looks at the causes of the current rise in inflation and asks how long it might be expected to continue and what trustees can do to protect their funds from the extra liability.

Royal London Asset Management has launched a global index-linked bond fund aimed at hedging against potential inflation, but at higher yields than currently available in the UK.

Schemes need to prepare for the return of inflation in case central banks fail to control upward pressure on prices, Watson Wyatt says.

UK - British Airways saw its net pensions deficit increase from £307m (US$509m) to £2.6bn following an interim valuation.