Ingham Analytics has issued a Trader note entitled “Fighting inflation” which asks a straightforward question. How could you protect yourself? Savings rates have dropped by 250 basis points since January 2020, in line with the repo rate. Stats SA say CPI is 3% but by their own admission that number has been distorted by COVID-19 lockdown with the sample size significantly restricted. And, as Ingham Analytics have been warning, don’t discount the temptation by government to monetise rising indebtedness by stoking inflation. For those investors seeking to keep their purchasing power intact, Ingham Analytics examine an inflation-linked bond, similar in design to the “TIPS” in the United States. Please also click on the explanatory addendum on the website for further background detail.
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