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Has the worst of inflation passed and is inflation still a concern or consideration?

These are two very different questions and from a financial planning point of view, inflation is always a concern or certainly a consideration even in more normal levels of inflation i.e If you’re seeking to retire in 10 years time or you’re looking to draw money down after saving up for something for 10 years.

If inflation is 2% (Not factoring in compounding) there should be a price increase of 20%, across goods and services, cost of living for retirement, or maybe if you’re saving up for something – So that needs to be factored into your financial planning.

Are we through the worst of inflation? It looks like we are. There still are risks that have been highlighted by the European Central Bank.

That is an increase in wages, which means there’s more money, so there’s more of a demand for products which can be inflationary.

The supply chain disruptions from geopolitical conflict mean the potential shortage of some goods and the potential increase in the price of oil, are both inflationary.

It does look like we are through the worst of inflation, but there might be a couple of spikes ahead, but certainly, from a financial planning point of view it always needs to be factored in.

If you have any queries about how inflation may affect your financial planning feel free to get in touch to start a conversation💬

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