Earlier this week the Central Statistics Office declared that inflation has risen to 9.1% in June. The consumer price index measure has increased by 1.3% in the last month, the highest rate since 1984. Please see the info graphic below to check out some of the price increases below.
What is inflation?
Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.
How do I combat inflation?
1. Invest in yourself & upskill.
As inflation can have a negative impact on peoples cost of living, upskilling is a great tool to potentially increase your income. Increasing your skills and knowledge may allow you to generate additional income from your full time employment and provide a greater disable income for you and or your family.
2. Investing in the stock market
Statistics show that the stock market has consistently provided positive returns in the long run. While short term dips are unwelcome the market has always bounced back over time and shown growth. You should check out our recommended Zurich funds in the Alpha Savings & Investment Club and book an appointment with one of advisors to discuss the best options for you.
3. Diversify your portfolio
Diversifying your portfolio in an actively managed fund protecting against inflation but also any down turns in the market. Commodities and commodity resource companies tend to do well during these times as well as some cases for healthcare companies and property. Equities Generally do not perform well during times of inflation as interest rates rise.
If you wish to book a financial planning consultation with one of our advisors you can do so here. Thank you.