Gold and inflation-linked bonds can save us
16:12
Due to the changes taking place, our wallets have less financial resources, and the selected products become more expensive. For example – according to the Knowledge Base of Knowledge Prices – in November 2015 a half-kilogram loaf of wheat-rye bread cost PLN 2.20 on average, and in July 2021 – already PLN 3.14, which means a price increase of over 42 percent.
According to GUS data, fuel prices increased by almost 30 percent, electricity and gas by almost 10 percent. An important component that adds fuel to the inflationary fire is also the energy crisis.
In response to high inflation, the MPC decided to raise the reference interest rate by 0.4 percentage points, from 0.1 percent to 0.5 percent.
"What does it mean for us? The rate hike affects, among others, bank loans and deposits. For example, the installment of a mortgage loan for PLN 250,000 / 350,000 may increase by over PLN 60-80 per month,” Aleksander Pawlak, President of Tavex, pointed.
"It is worth looking at inflation-linked bonds. Securities based on inflation with rapidly rising prices protect us from losing the value of money over time. However, gold is a more effective long-term hedge of savings," he added.
(WBJ)
