In August the inflation rate was 3.9 percent.
With all the excitement about negative interest rates of 0.5 percent: Inflation is the greater threat to wealth.
The purchasing power of the money in the checking account or savings account melts relentlessly, often unnoticed at first, that's the mean thing.
In contrast to negative interest rates, no one points this out to the saver, and a declaration of consent does not have to be signed.
In ten years with 2 percent inflation, 1,000 euros in purchasing power will turn into 820 euros, and at 4 percent 675 euros.
Daniel Mohr
Editor in the economy of the Frankfurter Allgemeine Sonntagszeitung.
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If you want to take countermeasures when investing, you can first think of inflation-indexed federal bonds, also known as linkers. Their repayment is based on the harmonized index of consumer prices (HICP) in the euro area, i.e. on the development of inflation. If inflation rises, the repayment is higher and thus ensures that purchasing power is maintained. The idea of investing in such securities is not new. With the rising inflation rates of the past few months, the prices of the corresponding securities have also risen significantly. The linker, which will run until 2046, was still quoted at 113 percent three years ago, now it is 156. So anyone who expected inflation rates to rise early on could benefit significantly. Anyone entering today should assume that inflation expectations will continue to rise.
Shares also benefit from moderate inflation, as companies can charge higher prices, which can increase sales and profits and thus also lead to higher share prices. However, this is not an automatic mechanism, as is the case with inflation-linked bonds. The price of gold does not rise automatically when inflation rises either. In history, however, gold has been a good guarantee of value retention over generations.