(Feb 12): Markets are complacent on the outlook for US inflation, making trades that pay out if price pressures climb look attractive, according to the rates desk at Citigroup Inc.Investors may be underestimating the resilience of the US consumer and market expectations for inflation are likely to be revised slightly higher, said Benjamin Wiltshire, a rates trading desk strategist at the US bank. “Markets seem to have this conviction that inflation is going to come down,” Wiltshire said in an interview. “We’re still in a structurally higher inflation environment.”Wiltshire recommends buying five-year inflation forwards, which he reckons look too low at around 2.5%. Current inflation is still running hotter than that — the Federal Reserve’s preferred measure of underlying inflation remains sticky at just under 3%. “The vigor to go and price inflation premium is not there,” he said.

Source: The Edge Markets February 12, 2026 13:11 UTC