Spears Indices
1. Sanderson
2. The Rookery
8. The Ritz
10. The Stafford
11. Durley House
12. The Halkin
13. The Berkeley
14. The Goring
15. Blakes
16. Claridge's
17. Brown's
18. St James's Hotel
19. One Aldwych
20. Dukes
21. No. 11
22. The Baglioni
23. The Langham
24. The Hoxton
25. The Metropolitan
Unbillable Hours
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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.
