The impact of COVID-19, global supply chain issues, and the ongoing war in the Ukraine have combined to help drive the cost of living upwards almost everywhere in the world, Trinidad and Tobago included. 

Following a sustained period of low inflation, the last year has seen a dramatic and persistent rise in the cost of nearly all goods and services.  

The persistent price we have all witnessed is often measured by the term “inflation” and for many it is a worry. If inflation keeps rising at a high rate, it’s difficult to plan how much you can spend, save, and invest.

Inflation is a rise in prices and a decline in the purchasing power of money over time. The rate of inflation is measured by taking the average price increases in a pre-defined basket of selected goods over a defined period and is usually expressed as a percentage.  
 
An inflation rate of 10% does not mean that all goods and services have increased by a rate of 10%. In fact, some items may have increased at more than 10%, some at less. 

One question you must consider is whether your existing portfolio is structured in an efficient manner to reduce the impact of inflation and the rising cost of living. 
 
It’s vital that your portfolio is structured in a manner so that it continues to supply capital growth over the long term. Investing offers the best strategy to limit the impact of inflation. 
 
Consider any tax incentives given by the government that allow you to invest a certain amount of your income each year to fund your retirement. 
 
Are you making use of all those incentives? 
 
The current economic climate highlights in Technicolor the importance of working with seasoned and experienced professional wealth advisors, such as Firstline Securities Limited. 
 
If an assessment of your current portfolio is beyond you then we can help.  
 
Whatever your age and your stage on the path to retirement, we can help to make sure that your portfolio is structured in an optimal manner to help shield you from the ravishes of high inflation.

Although it may seem like we are stuck on a never-ending cycle of increased prices history shows that periods of high inflation tend to be short in duration.  
 
Moreover, the current trend of increased prices is not atypical, as I have written in the first paragraph.  
 
Although no one has a crystal ball and can say how long the inflation rate will remain high, it’s possible that we have reached or are close to the peak.  
 
Monetary policy initiatives taken by Central Banks around the world are also likely to dampen down future price increases. In other words, there may be light at the end of the tunnel.