News and Analysis | Carla Gerlach | May 24, 2022
Food, fuel and gas prices are all soaring, pushing inflation to a 40-year high of 9 percent. It means hard-pressed consumers are having to spend more of their pay packet on groceries, drinks, clothes and other items; more so than they would have done so one year ago. But what is inflation and how does it work?
Put simply, inflation is the increase in prices for goods and services over a period of time. To find out what the rate of inflation is, the Office for National Statistics examines the cost of hundreds of items which people generally purchase.
They will use this information, add everything together and then compare to what the items added up to were 12 months ago. This creates the rate of inflation.
So, why does this matter when considering green investments? Well, no matter what you’re doing with your cash – whether you’re saving a lump sum after receiving an inheritance, building up a pension pot or something else, rising inflation will affect your ability to purchase goods, services and other items by reducing the value of your money.
This does not mean a £20 note becomes a £10 note in actual terms, but it may feel more like that when what you buy has increased in price. It’s no good therefore to have a stash of cash just sitting in a bank account without a proper strategy in place.
At Path, we can help you to create a wealth of investments which will give you the results you want while factoring in the effects of inflation. And getting the right expert advice could prove crucial.
Be in no doubt, we’ll examine your options in a professional and considered way, making sure the investments you make are the right ones while protecting the planet from the effects of climate change.
We don’t provide advice on investments which harm the environment, so you know you’ll be getting guidance on how to beat inflation while also making a greener choice. And it doesn’t matter who you’re currently invested with or what you’ve done before, as we’ll be here to hone through the details and come up with a plan which will work.
So, if you’re interested in beating inflation while also protecting the planet, get in touch with an advisor from Path today and see your money go further.