Inflation - Should It Wake Us Up?

Inflation - Should It Wake Us Up?

1/12/2022

Inflation in the Czech Republic has now exceeded 6%, in the United States, it's approaching 7%. How did this happen? What is its cause?


We all feel inflation. Its current cause is a shortage of almost everything from raw materials to labor. At the same time, the prices of fuels and housing are rising, and even the cost of shipping containers from Asia to Europe is higher.

Inflation tells us how things become more expensive over time. It's the decline in the purchasing power of money in relation to goods and services. Simply put, for the same amount of money, we can buy less goods or services over time (salaries don't always rise in perfect harmony with inflation).

A healthy inflation rate is around 2%. The current 6% affects production, where costs are rising in practically all inputs – raw materials, energy, fuels, and wages.

But why is inflation rising now?

How to protect against inflation?

Is it too late?

What about the Czechs?

Along with other goods and services, the price of beer is also rising. The following graph shows how much we bought a draft beer for in 1989 and how much it costs today. Keep in mind that our salaries have also changed :)

Want to protect your money from inflation?

Do not hesitate to contact us

Contact

Ing. Petra Štěpánková, MBA, EFA

+420 604 218 602

petra@meliorinvest.cz

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