Majority of citizens concerned about their money, the rural population particularly affected by rising prices


Some 63% of German citizens worry about their money due to high inflation, according to recent data. Data from Google search engines also indicates that there is increased interest in this topic. More people have searched for the term “inflation” this week than at any time in the past five years. In a new study with infographics, the news portal Block-Builders.de explores key developments regarding both actual and potential inflation.

The Google Trend Score for “inflation” currently peaks at 100. The score, an indicator of relative search volume, has multiplied in the space of a few weeks. This is hardly surprising given the rapid development: the inflation rate in Germany fell from 1% in January to 5.2% in November.

As the infographic shows, rural people are disproportionately affected by this. For example, while city dwellers often benefit from district heating, many houses in rural areas still have oil heating systems – indeed, 80% of all oil heating systems are in the countryside. This is important because the price of heating oil has particularly increased. On average, people in rural areas are also more affected by rising fuel prices.

There may also be ways to profit from rising inflation. Tangible assets, such as stocks, ETFs or real estate, are considered to be particularly effective hedge against inflation, but even these require further consideration. For example, it is advisable to buy shares of companies that are mainly active in countries less affected by the current trend of inflation.

Borrowers may also benefit from higher inflation, since contractually fixed loan amounts remain the same. While many things get more expensive in times of inflation, loans are not and, in fact, often become cheaper as wages rise in response to inflationary situations.

Deflationary digital currencies such as Bitcoin could also benefit from a devaluation (FIAT). But the risk here is immensely greater, simply because there is limited historical data due to the fact that the currency is still so young.

The full story with infographic, facts and more stats:

https://block-builders.net/inflation-majority-of-citizens-concerned-about-their-money-rural-population-specially-hardly-hit-by-price-rises/

Copyright © acrofan All rights reserved

Previous Yellen and the global tax drop
Next (P) Carrying out mergers and acquisitions in Western Europe: tax traps and structuring opportunities