As fiat currency collapses, ‘inflation is out of control.’ Here’s how you link your savings to gold.
The Bank of England confirmed that UK inflation surged to 2.5 percent in June, increasing the danger of inflation for UK savers. This is the highest reading since August 2018, and in light of the current state of the economy, a new savings service has been introduced to help people avoid traditional banking.
Inflation will continue to eat away at savings, as the Bank of England revealed today that the Consumer Price Index (CPI) increased from 2.1 to 2.5 percent. This is greater than the Bank of England’s target of 2%, and many have predicted that it will increase considerably higher in the following months.
The Bank of England has predicted that inflation will peak at 3% before falling, but Andy Haldane, the central bank’s retiring top economist, has cautioned that inflation might reach 4% by the end of 2021.
In response to today’s inflation numbers, Rachel Winter, an Associate Investment Director at Killik & Co, issued a warning to savers.
“Increased inflation remains a welcome sign of much-needed economic growth in many cases,” Ms Winter added.
“However, if inflation continues to deviate from the Bank of England’s two percent objective, the central bank may be forced to raise interest rates sooner than expected.
“Rising inflation is currently regarded to be a one-time blip driven by a multitude of variables.
“One is the high oil price, which has led in higher pricing for things like gasoline.”
In addition, as Independence Day approaches, the hospitality business has seen an increase in demand since coronavirus regulations have been relaxed.
“UK citizens hold £1.7 trillion in cash, the majority of which is held in low-interest accounts and is not keeping pace with inflation. Those with extra funds might consider investing in assets that have historically provided inflation protection. Commodities and real estate investment trusts that can adjust rental charges in pace with inflation are both viable options.”
“When will people in authority admit that inflation is out of control?” Jason Cozens, the Founder and CEO of Glint, also pondered on how inflation is a global issue. Inflation in the United Kingdom is on the rise, currently reaching three-year highs and showing no signs of abating. “Brinkwire Summary News” reports that the Bank of England has already agreed that three percent inflation is likely this year.