How to defend yourself against high inflation

With the authorities bent on inflating our way out of debt, the recent drop in the inflation rate is likely to be short-lived. Matthew Partridge explains why, and picks the best ways to protect your wealth.

One of the few bright spots in the economy has been the fall in inflation. Lower energy prices have helped push the headline rates in both the US and UK down. Core inflation (excluding energy and food) is now just above 2% in both countries. While it doesn't solve all our problems, it certainly provides breathing room for the consumer.

However, this is likely to be brief. In the long run, inflation is the least painful way out of our current economic malaise, which is why it's the path our leaders will try to force us down. Here's what you should do about it.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri