Three ways to protect yourself from rising inflation in 2022

Three ways to protect yourself from rising inflation in 2022

Many households are struggling after the energy price cap was increased by £693 to £1,971. And, piling on yet more pressure, is that prices surged by 7pc in the 12 months to March as UK inflation hit its highest level in 30 years. Experts have predicted the cost of living crisis will deteriorate even further in the coming months. The Consumer Prices Index recorded its biggest increase since 1992 as prices rose by 7pc, higher than the 6.2pc recorded the previous month. To combat soaring inflation , the central bank raised interest rates from 0.5pc to 0.75pc last month. However, this will likely not be enough to bring down prices and a series of further increases are widely anticipated this year. Here, Telegraph Money answers all of your questions. 1) Change where you invest Bond owners could suffer the most . Investors sell bonds – which pay a fixed return, or “coupon” – when inflation rises as it eats into the real value of that income. Higher inflation also increases the likelihood the Bank of England raises interest rates, as it has done, which would be bad news for bonds as it decreases the relative value of their payments versus