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Inflation matters

In Brief: Inflation matters

Thursday, 10 January 2019

Investors need to remember to prepare for the risk of inflation as rising prices can erode investments. To uphold purchasing power over time, your savings need to grow at least as quickly as prices are rising. Forecasts from The Bank of England consumer price inflation will remain above 2% in each year until 2021. Whilst it is viewed as prudent to maintain some cash savings for any immediate use, the cost of living is rising faster than the interest rates on cash. Meaning there is a danger that your savings will slowly become worth less and less, leaving you worse off down the road. Seeking higher investments and matching income with inflation could be among your financial. Seeking professional financial advice could help you to focus your investments to manage the risk of inflation on your investments.

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