The great debate in investment circles continues to be the inflation story.   We’ve seen huge hedge funds moving into reflation trades (Paulson) while others are still rumored to be playing the deflation card (Hayman Advisor and Bridgwater are notable).   A key component to the inflation trade will clearly be raw material prices – the most influential of which is oil.  I’ve attached a great chart detailing potential CPI scenarios based on oil prices:

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Chart courtesy of JP Morgan.