As I showed in an article entitled ‘The Real Inflation Figure in the UK is now over 35%’, on 13th March 2023’ the real inflation rate is far higher than the Government and the mainstream media is telling us.
If you had £1,000 in a bank or building society on 1st January (or in a sock under the bed) then it will be effectively worth £650 by Christmas 2023.
And by Christmas 2024 it will have lost another third and will have a purchasing power of a little over £400.
If inflation continues at the present rate your savings will be worthless in just a few years’ time.
This is how inflation does damage.
Of course, if you don’t have any savings, don’t have a pension and spend every penny as soon as you get it then inflation won’t affect you directly.
Except for the fact that the value of any money you receive in the future will also be diminished. So, every £1000 you receive in wages or benefits will, by Christmas, have the spending power of £650. So you’ll be that much worse off financially.
And the cost of everything you buy (especially the essentials such as food and energy) will soar.
To find out more read They want your money and your life by Vernon Coleman which is available via the bookshop on this website.