Recently you may have seen a spike in your grocery bills and must have experienced the sporadic hike in oil prices. As per current data from the Ministry of Statistics and Programme Implementation, the annual inflation rate has surged to 7.79% in the month of April, which is 0.84% higher than March 2022 and 3.56% higher than April 2021. And inflation is at its peak since its last hit of 8.33% in May 2014.
The recent war has inflicted the curse of inflation over the world economy, with massive growth in global oil prices and the unavailability of essential products, mainly edible oil and consumable commodities. To combat the effects of inflation, the RBI has recently hiked interest rates. And if the supply-demand discrepancy continues, we might see another hike as well, as per economists.
With all that happening, the big question is ‘How will inflation hit your investments?’
The market is in an extremely volatile state; money invested in mutual fund investments is losing value. So, if you are looking for some new investments, it is better to hold back and wait for the market to attain some stability.
If there is money lying with you, and you are looking for investment options, an FD/RD investment is still safe, as the interest is not market dependent. You can also park your money in a 0 balance savings account for the time being. The interest might be low, but it is always better to play safe with your funds. You don’t have to hassle to open an account and can get it done digitally from the comfort of your home.
To insure your future, you have to factor in the impact of inflation in the long run.
Choice of life cover
While choosing the ideal term plan for you and your family, you have to analyze your goals, and then apply for a term plan that support your goals and offer assured sum at the end of the tenure.
Choice of health plan
Inflation will surely impact medical expenses in the long run. Doctor fees, medical services and medicine costs will only rise, if the inflation rate remains the way it is. So, while planning for a medical plan, you have to scale the amount of money you allocate to a medical plan.
Learn more about investments and inflation to make sure you use your money the right way. Keep in mind that Investment is necessary, and with the impact of inflation you have to be more cautious to secure your goals and health for the long run.