The significance of inflation

Inflation affects every aspect of the economy, from the amount of cash in a consumer’s pocket through to business investment and government policy. It also eats away at investment returns.

With prices rising faster than they have for decades, we believe possessing a greater understanding of inflation can lead to better investment outcomes.

Inflation is set to remain a major force in directing global capital markets, and your portfolio, no matter how you are invested.

All investments carry the risk of capital loss. The value of investments, and any income generated from them, can fall as well as rise and will be affected by changes in interest rates, currency fluctuations, general market conditions and other political, social and economic developments, as well as by specific matters relating to the assets in which the investment strategy invests. If any currency differs from the investor’s home currency, returns may increase or decrease as a result of currency fluctuations. Past performance is not a reliable indicator of future results.

Important Information

This communication is provided for general information only should not be construed as advice.

All the information in is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessary reflect those of Ninety One.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon.

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