Guide to inflation

15 July 2022 / Insight posted in Practical guides

As of May 2022, UK consumers are paying 9.1% more for everyday goods than they were a year ago – the highest rate of price increases in decades. Consumers can guard against rising prices by fixing certain outgoings, such as energy bills, loans and mortgages. But what about their savings and investments? Our guide to inflation explains how cash performs poorly in times when prices are rising, why shares in companies tend to hold their value better than cash: but their ability to weather inflation varies according to a range of factors.

In recent memory, inflation in most developed economies has been low. So, what’s changed, and what does it mean for you? Our guide explains more about:

  • inflation and deflation
  • causes of inflation
  • when inflation is a problem
  •  it links to interest rates
  • practical ways investors can limit the harm of inflation

Read more in our guide to inflation here.

Please get in touch if inflation is a concern and you would like to review and/or discuss your investment strategies.