{"id":15060,"date":"2017-09-08T13:00:01","date_gmt":"2017-09-08T11:00:01","guid":{"rendered":"https:\/\/www.joaquinmone.es\/?p=4791"},"modified":"2025-06-02T13:32:58","modified_gmt":"2025-06-02T11:32:58","slug":"inflation-the-enemy-of-our-savings-and-purchasing-power","status":"publish","type":"post","link":"https:\/\/pibgroupiberia.com\/en\/blog\/la-inflacion-enemiga-de-nuestro-ahorro-y-capacidad-adquisitiva\/","title":{"rendered":"Inflation: the enemy of our savings and purchasing power"},"content":{"rendered":"

We are coming from a few years in which inflation, the rise in the price of what we buy, has been stagnant, even negative. In fact, between 2013 and 2015 the overall figure was negative: 0.3%, -1% and 0%, respectively. For this reason, as soon as we were able to achieve a return on our savings, we were already earning something. We will see what happens when there is inflation, as has been happening since 2016.<\/p>\n

Real (net of inflation) profitability<\/h2>\n

The profitability of any investment product depends on a number of factors, but the main one is undoubtedly the level of risk<\/strong> you are willing to take on.<\/p>\n

However, the key to knowing the real return on your investments in a year is not only to know the % by which your invested capital has appreciated. At that profitability, inflation for that year has to be deducted.<\/strong>, The fact that it diminishes our real benefit.<\/p>\n

Example:<\/strong> I have a deposit that is giving me 1.5% APR (this is net of expenses). You have to subtract inflation from that 1.5, as the standard of living is more expensive, so it costs me more to buy basic necessities, rent, etc.
\nAssuming 1% inflation, the real return is 0.5%, which is lower than we originally thought.<\/p>\n

\"Inflation<\/h2>\n

How to avoid the effect of inflation on our savings<\/h2>\n

It is clear that we cannot avoid it, but we can dampen it. Our main advice is diversifying investment<\/a>, taking into account, of course:<\/p>\n