Why Is The Inflation Rate Is Rising & Will It Increase Further In 2022

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1. Introduction

In this article, I would like to explain what inflation is, should you be worried about it and also voice my opinion on the causes of inflation in 2021 and the likely behaviour moving into 2022.

Last but not least I will also talk about what you can do about it and how you can protect yourself against the impact that inflation has on your wealth.

2. What is inflation

For the benefit of those who are new to finance, inflation is the decline of purchasing power of a given currency over time.

The inflation rate is the rate that measures the extent to which your purchasing power changes – be it for the better or the worst.

The best example I can give you was that 10 years ago, Bic mac costs $5 but now it costs around $8. That $3 differences are what we call inflation and essentially the inflation rate is around 60%.

3. Should you be worried about inflation

Yes, inflation is very real and to a certain extend you should be worried about it because