Fighting inflation1 min read . Updated: 24 May 2009, 08:44 PM IST
Although WPI numbers are currently at lows, shoppers going to the market are seeing prices of vegetables, pulses, and even clothes rising.
Click here to watch video
Dhruv Agarwala and Kartik Varma, Co-founders of iTrust Financial Advisors say they expect inflation to continue rising over the next 12-24 months.
“India as a developing country still has very high difficulties", says Varma. “For various reasons, we expect oil prices to go up as well and oil is going to be a big driver of inflation going forward. If that were to happen we need to watch out and invest accordingly," he adds.
So what can we do to protect our investments from inflation, which erodes the purchasing power of your savings? Agarwala and Varma suggest moving money from savings, fixed deposits, or bonds, into hard assets such as gold, real estate, or commodities. "The value of these items tends to rise when there is high inflation", says Agarwala.