Soaring inflation and Real Assets – a match made in heaven?

We would need to delve back into past times to understand what life with high inflation looks like, because let’s face it, a bulk of the UK working population haven’t ever witnessed such a time. Of course, there are still plenty who can recall the 1970’s inflation boom and the measures taken by a Margaret Thatcher led government to address the issue.

But first, let’s recap on what inflation actually is. Referred to by many as the ‘cost of living’, inflation is the term used to describe the increase in prices over time. Inflation is calculated by adding up the average prices of thousands of different things and comparing them to the prices of the same goods a month ago. This means there is a list somewhere of the specific things that count towards inflation in any given country, and each month someone has to go out and check the average prices of all these things.

How quickly those prices go up is called the rate of inflation. Inflation is shown as a percenta