A new Northern Trust survey finds institutional investment managers increasingly see inflation as likely in the near future, with oil prices and market volatility also rising over the next six months.

Approximately 70 percent of managers believe that the risk of inflation will increase over the next six months, and a majority of managers (62 percent) expect market volatility, as measured by the VIX Index, to increase over the next six months. Responses on both questions were at their highest points since the Northern Trust survey began in the third quarter of 2008.

This quarter, managers were also asked for their views on oil prices. More than half of those surveyed believe that oil prices will continue to rise over the next six months, with 90 percent of managers expressing the view that increased oil prices will negatively impact economic growth. Twenty-six percent of the managers increased their portfolio exposure to commodities during the first quarter, a possible result of the increasing expectations that inflation is set to rise over the next six months.