Why inflation is such an issue?
Inflation can have a significant impact on our finances in a number of ways. But what exactly does it mean? And what impact could it have on our savings and investments? It’s important to understand how inflation works, as well as the effects it has on our financial planning. As the American economist Milton Friedman remarked, ‘Inflation is taxation without legislation.’
Concerned about the effects of inflation on your savings?
Put simply, inflation affects all aspects of the economy, from consumer spending, business investment and employment rates to government programmes, tax policies and interest rates. Understanding inflation is crucial to investing because inflation can reduce the value of investment returns.
Read our factsheet by hovering over the image on the right and downloading the pdf.
Reference – FS037 – Nov – 19