Views:490 | By: Becky | Act: Visit Business Inflation is an increase in the price of commonly used goods and services in an economy. For instance, the overall increase of products that are taken place in Kenya over the last year. During inflation prices of common commodities may increase by an exaggerated margin leading to financial strain on society. The impact of inflation affects all households irrespective of class or financial aptitude. Although the majority of those gravely affected are those in low-income brackets its effect is noted even in the economic development of the society.
Inflation as a whole is not managed but often happens as a result of an existing crisis. This can be disruptions of the supply chain caused by COVID-19, surging consumer demand for products, and reduced working population due to diminishing economic participation. Therefore how best can we invest during the period of inflation??
The best inflation portfolios during inflation often fall around bonds and stocks. This sector of the economy tends to progress through all economic downturns due to the increasing need for financing.
Stocks to a public-owned company can be bought and battle through inflation creating growth in income value during inflation and growing into deflation. This can help prevent the financial drain due to spending increases during inflation.
Therefore to be able to financially grow during the period of inflation it is necessary to observe a moderate budget that will support your saving and income. Also, invest in areas where financial safety can be assured. This does not mean that there is a risk, it simply implies that there is a need to utilize professionals during investments.