By now, we are all aware that inflation is known as a generalised rise in prices that makes our savings lose value. Albert Chic, an agent at 11Onze, analyses the current economic situation and details possible solutions for dealing with runaway inflation.

“In the second half of 2021, inflation at home exceeded 5%. A figure unprecedented in the last 30 years,” says Albert Chic. This rise in prices, together with the loss of the real value of the currency, leads to a huge reduction in the monetary wealth of the population, who see their savings vanish without even leaving the bank.

The disruption to the supply chain and the increase in the price of raw materials caused by the health crisis explain part of the rise in prices, but as Chic explains, “also another phenomenon such as Greenflation”, a rise in prices caused by the increase in demand for minerals essential for renewable energies, “such as electric cars, wind turbines or solar panels”.

Inflation could fall in the second half of 2022

As the 11Onze agent explains, “although the impact of the Spanish government’s palliative measures remains to be seen, forecasts indicate that inflation will remain high during the first half of 2022“, followed by a few months of “a downward phase”.

If these measures prove insufficient to reduce the inflation rate, the European Central Bank (ECB), “will be forced to apply a more drastic policy, accelerating the withdrawal of economic stimulus, raising interest rates, and reducing debt account programmes,” Chic notes.

If you want to know more about superior options to make your money profitable, go to Guaranteed Funds. From 11Onze Recomana we propose you the best options in the market.