Inflation can often be perceived as a 'stealth tax'.
You might be pleased to have secured an interest rate on your savings as high as 5%. Congratulations on that 🎉
However, here's a reality check...
If the current inflation rate of 11% per annum persists in the UK (and it has been quite persistent so far), you are still experiencing a loss in purchasing power.
To illustrate this, consider this scenario: £100,000 deposited in an account with a typical interest yield of 1% will see its purchasing power halve to £50,000 in approximately 6-7 years at current inflation rates. If your bank interest rate is as high as 5%, the value of your account would halve in around 12 years.
As a business owner, it might be beneficial to start familiarising yourself with the financial and tax levers that could help or harm you. Also, start to learn more about crypto...
you are lucky that you are only facing 11 % inflation, our inflation rate has crossed 40 and we are also paying each and every tax including in anything we purchase.
Yikes, where abouts are you?
We live in Pakistan and the rate of inflation here is almost 40% and everything has become more expensive. Poor people can't even buy it.