Inflation has been a word used in all cases in recent months

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In electronic media, the press and during everyday discussions. The reading for November 2021 of 7.7% is the highest value in 21 years. We are increasingly feeling the increase in prices, which will be canceled during subsequent purchases. The individual inflation rate for low-income people is much higher than the values ​​provided by the Central Statistical Office. By manipulating the composition of the inflation basket, the Central Statistical Office is trying to understate its value in order to limit social unrest.

Reasons for the shock price increase
There are several reasons for the price increase, both domestic and foreign. The mistakes of Adam Glapiński, the Monetary Policy Council and the disgrace of the NBP are internal factors. The National Bank of Poland czech republic whatsapp database weakened the złoty against the euro and the US dollar. This strengthened the effect of rising oil and gas prices, after converting USD to PLN. Instead of starting a cycle of interest rate increases from the beginning of 2021, during a dynamic economic recovery, the head was buried in the sand. The NBP website published messages discrediting the national central bank. Billions of złotys created by the NBP were pumped into the market, fueling excessive consumption and inflation. Interest rates close to zero further fueled demand on the already overheated real estate market. Encouraging society to withdraw money from deposits and seek salvation for their savings from inflation. The disgraced MPC only began chasing inflation in the fall of 2021 by raising interest rates.

External factors include rising prices of raw materials and fuels. Billions created by central banks were pumped into financial markets, fueling growth on stock exchanges. The wave of cash flooding economies has hit supply chains interrupted by the pandemic and the decisions of the government (lockdown). The effect of printing empty money is a dangerous increase in inflation. With its help, the government wants to depreciate the excessive debt they have caused. In the process, they are destroying the savings and economic freedom of citizens.

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How to protect your money from inflation?
The inflation felt by society is much higher than the official data provided by the Central Statistical Office. The Central Statistical Office has long been manipulating the composition of the so-called inflation basket. In order to lower the value of the monthly published CPI. Interest rates that are too low in relation to inflation mean that money held in banks and bonds quickly loses value. Seeing the incompetence of the government, society is looking for alternative places to invest savings. So how to protect money from inflation?

Real estate
Apartments, plots and houses are among the most popular forms of investing larger savings in recent years. Price increases on the real estate market in the long term are a good way to protect money from inflation. However, as in other markets, there are multi-year periods of boom and bust. And the profit and accuracy of the investment may depend on many factors. Location, condition of the property, purchase price. Investors must take into account the risk of introducing cadastral tax. Increased mortgage costs, with external financing of the purchase. Unfavorable demographics and depopulation of most cities in Poland.

Stock exchanges
Stocks of listed companies are often recommended by many experts as a form of protecting savings against inflation. Especially in the long term, covering at least a dozen or so years. Although novice investors are afraid of the risk associated with the so-called stock market game. The key is to select the right companies for your portfolio. Develop your own investment strategy and systematically implement its assumptions. There are investors who focus on dividend companies that regularly share their profits with shareholders. Others prefer to look for investment opportunities and companies that are undervalued by the market. Cyclists use macro data and economic indicators to buy stocks in a bear market and sell them in a bull market. In practice, the best results are achieved by combining knowledge and experience on the market. Using fundamental and technical analysis at the same time, as well as knowledge of the economic cycle.