Inflation, the rot eating away at our savings

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.

If you liked this article, we recommend you read:

Economy

Euro’s devaluation will increase inflation

4 min read

What will be the consequences of the devaluation of the euro

Finances

Dictionary of inflation

1 min read

Learn what the different concepts linked to the evolution of the Consumer Price Index

Culture

Hyperinflation

3 min read

The latest data provided by the National Statistics Institute (INE) shows that in July, prices



Equip Editorial Equip Editorial
  1. Joan Santacruz CarlúsJoan Santacruz Carlús says:
  2. Jordi MorenoJordi Moreno says:
    Jordi

    Sí, a mí també m’ha agradat molt l’article👍

    • Mireia Cano says:

      Ho celebro, Jordi! Estar informats sobre aquests temes és imprescindible actualment. 👌🏻

      2 years ago
  3. Manuel Bullich BuenoManuel Bullich Bueno says:
    Manel

    No tothom tenim 125k, per invertir en fons garantits😅.
    Molt bon article.

Leave a Reply

App Store Google Play