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By Martin Spieler, July 3, 2018
Everything is getting more expensive: 1.9% – this is the highest inflation rate in Europe since April 2017. Photo: Urs Jaudas
Long ago there was a retreat in Switzerland inflation. Everything was always cheaper – except, of course, health insurance. But for a few months, our inflation has increased. Do you have to react as an investor? G.K .
Yes. Inflation is back. This is obviously in Europe. In May, we experienced the strongest inflation in the euro area in more than a year. According to the Eurostat statistics office, consumer prices rose by 1.9% in May compared with the same month of last year.
This is the highest inflation rate since April 2017. With an inflation rate of 1.9%, inflation is heading towards the Bank's target range European Central Office, which is 2%.
In this context, European central bankers have recently decided to end their trillions of bond purchases by the end of the year. The fact that they still have not had the courage to announce a rate hike has a lot to do with the problems in Italy.
Indebted countries like Italy should pay a lot more for their debt service with rising interest rates and could even get into trouble. As a result, the ECB has signaled that interest rates will remain low until at least the end of the summer of 2019, especially as central bankers do not want to hinder under any circumstances. the recovery in Europe.
The increase in inflation in the euro area is somewhat offset by the fact that the much stronger price hike in May, according to Eurostat, is mainly explained by the sharp rise in energy price which has risen more than 6%. If energy prices fall again, it would also slow the rise in inflation
Inflation is a poison for the Sparbatzen
But you can reverse and turn as you like: The inflation is again a problem and points up, the European Central Bank has also raised its inflation forecast for this year and the next, and provides that consumer prices in the euro area will increase by 1.7% this year and 2019 respectively.
In Switzerland, although inflation is lower – the times of zero or even negative control are definitely over – even with us. In this context, I think that as an investor, attractive inflation should be taken into account. Because inflation is a poison for the Sparbatzen.
With the rise in inflation, savings are losing more and more value. Therefore, you must get at least a return on savings, which exceeds inflation and fees, which is not possible in the savings account. Otherwise, you lose money.
Shares offer protection against a slight rise in inflation as long as the corporate earnings bubble and dividends are generously distributed. The real estate also offers protection against inflation, with price mishaps to be expected in the event of a subsequent rise in interest rates.
Precious metals such as gold and silver offer high protection against inflation. The higher the price, the more I am likely to round a widely diversified deposit with a small amount of gold. Martin Spieler "/>
