UAE current inflation is in a good healthy position of about 2% comparatively to OECD countries where inflation has risen to above 5%. World wide inflation is the happening due to supply chain shortages as most countries are coming out of Covid and many factories are still not 100% with their workers capacity. Inflation can cripple your saving and as many are still unemployed or their businesses are not completely back to pre-Covid level, we all need to manage inflation.
What is inflation?
Inflation is a term that describes the general rise in prices for goods and services. It happens when there is an increase in supply, demand or money supply. With the economy growing at its current pace, you might be wondering what steps you can take to protect your finances from inflation. In this article we will cover some of your options.
Methods of protection from inflation
Inflation can be prevented by investing in something called real assets, which are assets that are directly tied to inflation-resistant economic activity, like housing, commodities, or gold and silver. These assets can also provide investors with an income stream that increases as the price level rises.
You can protect your finances by understanding the ways inflation can affect you. Follow us today to learn more, and if you have any questions or concerns about protecting your finances from inflation, be sure to give our team a call.