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1. The Back Office: Unicorn Administration
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3. Boston
4. Fleming Family and Partners
6. Iveagh Private Investment House
8. Sand Aire
9. Stanhope
10. Stenham
11. Stonehage
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Q
I am growing increasingly worried about the effect of inflation on my portfolio, following the recent announcement that the CPI has risen sharply to 3.5%. What is the likelihood of significant inflation in the coming year and what strategies should I put in place to plan for this?
A
Firstly, it is important to note that inflation and deflation can co-exist within an economy. The CPI only indicates the net inflation/deflation. However, investors need to know what parts of the economy are inflating and what parts are deflating as this decides whether there is net wealth creation or net wealth destruction.
