Do you remember when a packet of Walkers Crisps was 35g, it’s more like 28g today.
The price staying the same but the product shrinking is one example of how the official inflation statistics do not show the real truth.
In his book “How to Own The World”, author Andrew Craig explains that real inflation is probably closer to 10%. Governments use a number of methods to keep the official inflation rate artificially low so you feel wealthier and they pay less in benefits.
Other ways they do this are by swapping items in the inflation measurement that are increasing in price with cheaper versions (burgers instead of steak) and lowering the cost of items if they have additional features.
Inflation is one of the biggest destroyers of wealth and the only way to combat it and maintain your wealth is to invest in real assets like shares and property.
For your own personal Financial Director to run your family finances call:
Carl Roberts FPFS, Chartered Financial Planner
firstname.lastname@example.org // rtsfinancialplanning.co.uk // 01908 592544 // 07702 965275
RTS Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales. Registration number 10619163. 21 Fosters Lane, Bradwell, Milton Keynes, MK13 9HZ.
Risk warning: Stock market linked investments and any income from them, can fall as well as rise and are not guaranteed. Any figures quoted are for illustrative purposes and should not be taken as a forecast or guarantee. Past performance should not be seen as an indication of future returns and clients may get back less than they have invested.