The UK’s Consumer Prices Index (CPI) continues to soar, rising by 10.1% in the 12 months to March 2023, down slightly from a peak of 11.1% in October 2022. Despite the slight easing, prices still rose by 0.8% on the month compared with a rise of 1.1% a year earlier.
This persistent high inflation, compounded by Brexit-related uncertainties, has led to wage inflation and other factors that are likely to keep interest rates high or even increase slightly, which could affect the sterling.
Investors must take appropriate steps to protect their portfolios during high inflationary periods. This can include diversifying their portfolio, investing in assets that are known to perform well during inflationary periods, and turning to other markets to seek alternative opportunities. Seeking advice from financial advisors to ensure that your investment strategy is suitable for the current market conditions is highly recommended.
At deVere Group, we understand the importance of protecting your investments during high inflationary periods. We will continue to closely monitor the situation and keep you informed of any changes that may affect your investments.