Rising Prices, Shrinking Pounds: The Reality Behind Today's Inflation
Inflation in the UK is rising again, and it’s not just a blip. It’s part of a more profound structural shift that could usher in a new era of persistent inflation. From food to fuel, housing to holidays, the signs are everywhere: your money isn’t going as far as it used to.
And with interest rates failing to keep pace, the real value of your savings is quietly eroding. So what’s driving this trend, and what can you do to protect your wealth?
What’s Causing Inflation to Rise Again?
While official inflation figures may look “under control” at first glance, core pressures are building beneath the surface. Here’s what’s driving them:
1. Global Supply Disruptions Aren’t Over
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Climate extremes, geopolitical tensions, and shipping disruptions (e.g., Red Sea attacks, Suez Canal blockages) continue to increase the cost of imports, particularly for food and energy.
2. Public Spending & Debt
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Years of government stimulus, borrowing, and unsustainable debt servicing costs have pumped too much money into the system, with more being printed every time a crisis arises.
3. Rising Energy and Wage Costs
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Energy transition costs, green taxes, and rising public sector wages are creating embedded cost-push inflation.
4. Currency Debasement
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The pound has weakened significantly against major currencies since the Brexit vote, making imports more expensive and eroding purchasing power in the UK.
Why This Isn’t Just a Temporary Spike
Some analysts claim inflation will return to target soon. But many seasoned investors disagree, and for good reason:
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Structural inflation (built into wages, energy, taxes) doesn’t disappear overnight.
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Central banks have limited options; if they raise rates aggressively, they risk crashing markets and increasing debt defaults.
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And if they lower rates again, inflation is likely to reignite even faster.
We may be entering a period similar to the 1970s, characterised by stagflation: slow growth, high prices, and policy gridlock. In this environment, traditional savings tools are simply inadequate.
How Inflation Quietly Destroys Your Wealth
The most dangerous aspect of inflation is its invisibility. But make no mistake, it’s lethal to your long-term financial health:
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If inflation is 5%, and your savings earn 3% interest, your money is losing 2% of its value every year in real terms.
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Over a decade, that adds up to a compounded loss of purchasing power, even if your bank balance looks the same.
Inflation is a silent thief, eroding your ability to buy food, fuel, property, or fund retirement, while banks and governments pretend nothing’s wrong.
Why 24-Carat Physical Gold Has Never Been More Relevant
Unlike cash, stocks, or bonds, gold doesn’t depend on promises, interest rates, or third-party performance.
It simply holds its value over time. And when inflation runs high, gold has historically outperformed most other assets.
Here’s why physical 24-carat gold remains the gold standard in capital protection:
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Inflation Hedge: Gold has consistently risen during periods of inflation.
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No Counterparty Risk: You own it outright, not a fund, not a digital token.
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Tax-Free (UK legal tender coins): CGT-free for coins like Britannias and Queen’s Beasts.
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Globally Recognised: You can liquidate 24k gold anywhere in the world.
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Privacy & Control: Unlike bank savings, gold doesn’t require registration, permission, or disclosure.
Final Thought: Inflation Is Here, Protect Yourself Before It Gets Worse
This isn’t just about being clever with your portfolio; it’s about survival in a new financial reality.
If your bank pays 3% and inflation is 5%, you’re not earning, you’re bleeding. The smartest investors are quietly converting a portion of their cash holdings into physical gold, real, 24-carat, certified, and ready to be delivered or securely stored.
We also warned about inflation, and covered how owning Gold protects against inflation- https://offers.britanniabullion.com/blog/how-gold-protects-against-inflation
Ready to Protect Your Wealth?
Speak to a Britannia Bullion advisor today or download your free guide to Investing in Physical Gold. Learn how to convert your paper savings into hard assets that hold value, regardless of what politicians or central bankers do next.
The time to move is before the next inflation spike, not after.
https://offers.britanniabullion.com/your-beginners-guide-to-investing-in-gold
