Infographic: How to Protect and Hedge against Inflation

As the cost of living increases, consumers find their purchasing power eroded due to the effects of inflation. Similarly, investors sometimes also overlook the fact that inflation can erase the returns on their investments. In that light, how can we adequately prepare and protect ourselves from the damages of inflation?

As the cost of living increases, consumers find their purchasing power eroded due to the effects of inflation. Similarly, investors sometimes also overlook the fact that inflation can erase the returns on their investments. In that light, how can we adequately prepare and protect ourselves from the damages of inflation?

While the overall inflation rate has been relatively stable in the past decade, there are several sectors of the economy that have been victims of relentless inflation. From oil prices to tuition costs, and medical bills to even peanut butter, inflation can affect short-term expenditures and long-term retirement plans.

In the infographic below, we explain how inflation affects the amount of income you will need in retirement and how to protect from inflation.

Related News: World Bank Promises Action To Counter Rising Food Prices

Via Column Five for Jemstep