Close Menu
    What's Hot

    Tackling big challenges? Get out of the office

    Your Anonymous Data Isn’t as Anonymous as You Think — And Your Business May Be More Exposed Than You Realize

    Is Tether the Coppernose of our time?

    Facebook X (Twitter) Instagram
    Trending
    • Tackling big challenges? Get out of the office
    • Your Anonymous Data Isn’t as Anonymous as You Think — And Your Business May Be More Exposed Than You Realize
    • Is Tether the Coppernose of our time?
    • Shoe Carnival, Inc. (SCVL) Q1 2026 Earnings Call Transcript
    • RBC Canadian Open: Shane Lowry a shot off lead in Toronto after opening round as Brooks Koepka fires eight birdies | Golf News
    • How Mexican World Cup Stadiums Achieved FIFA’s Environmental Certifications
    • South Korea rally to beat Czechia 2-1 on World Cup opening day | World Cup 2026 News
    • Pool’s new app turns your screenshots into something useful
    interluknewsinterluknews
    • Home
    • Business
      • Corporate News
      • Industry Insights
      • Startups & Entrepreneurship
      • Technology & Innovation
    • Economy
      • Economic Policy
      • Financial Analysis
      • Inflation & Interest Rates
      • Trade & Markets
    • Global
      • Conflicts & Security
      • Diplomacy
      • Global Trends
      • International Affairs
    • Lifestyle
      • Fashion
      • Food & Dining
      • Personal Development
      • Travel
    • Opinion
      • Columns
      • Editorials
      • Expert Opinions
      • Reader Voices
    • More
      • Politics
        • Elections
        • Government & Policy
        • International Relations
        • Political Analysis
      • Sports
        • Cricket
        • Football / Soccer
        • International Sports
        • Local Sports
      • Technology
        • Artificial Intelligence
        • Cybersecurity
        • Gadgets & Reviews
        • Tech News
      • South Africa News
    Facebook X (Twitter) Instagram
    interluknewsinterluknews
    Economic Policy

    Are you financially ‘prepped’ for higher inflation?

    adminBy adminMarch 6, 2026No Comments5 Mins Read
    Share Facebook Twitter Pinterest Copy Link Telegram LinkedIn Tumblr Email
    Are you financially ‘prepped’ for higher inflation?
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Unlock the Editor’s Digest for free

    Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

    Are you a “prepper”? We live in an increasingly uncertain world, as events this week have sadly shown. Psychologically, some people gain peace of mind by preparing for the worst.

    Instead of panicking, they channel their nervous energy into stockpiling emergency supplies. I’m not suggesting you should stash tinned food in your cellar, but if you’re feeling jittery about your personal finances this week, there’s something we can take from the prepper mentality.

    As oil and gas prices spiral, the economic threat from another sustained bout of high inflation is impossible to ignore. The question the world is asking is how soon the war US President Donald Trump has started in the Middle East could end. While we nervously wait to find out, rather than panic about the gyrating value of our investments, here are some practical ideas for “prepping” your personal finances that I hope will give you some peace of mind in coming days and weeks.

    Remember why you invest

    Watching your portfolio shrink on a smartphone app is not something I’d recommend. Instead, remind yourself why you invest. The little mantra I recite to myself is: “I choose to live below my means. I regularly invest my excess income in the most tax efficient and low-cost way possible. I’m in this for the long term. Compounding is my friend and taking some investment risk gives me the best chance of beating inflation.”

    Instead of looking at the fluctuating value of my investment account and freaking out, I take a deep breath, a long-term view and comfort myself by looking at the balance of my emergency cash savings. With bonus season in full flow, you might feel nervous about investing your £20,000 Isa allowance in one go. But this is where money market funds come into their own. As investors, we must defend our right to hold cash within stocks-and-shares Isas and drip feed it into the market at our leisure.

    Still tempted to fiddle? Channel the urge by working out what you could save in fees if you switched your Isa or Sipp to a rival investment platform. And if you’re 45 or over, check that any current or former workplace pensions are not being “lifestyled” without your knowledge. This week’s movements in UK government bond markets show the hidden dangers of having your equity investments moved into gilts by stealth. Beware!

    Prepare to be fiscally dragged

    If inflation rises, you’d hope your wages would follow suit. Yet with income tax thresholds frozen until 2031, stealth taxes will claim an even bigger slice of people’s pay packets.

    At the time of the November Budget it was forecast that by 2031, nearly 5mn more people would have crossed the £50,270 higher-rate tax threshold and nearly half a million more would have entered the so-called £100,000 tax trap. Known as “fiscal drag”, these estimates can only increase if inflation is higher than expected.

    There’s a marginal tax rate of 62 per cent on the slice of income between £100,000-£125,140 as the personal allowance is withdrawn, rising to 71 per cent if you’re repaying a student loan (and let us not forget that some graduates are paying interest of RPI plus 3 per cent). If a parent earns over £100,000 they face the cliff edge of losing valuable childcare support. More taxpayers than ever before need to prepare for this threat.

    At the Spring Statement this week, the Office for Budget Responsibility said it would investigate the risk that tax traps “distort or constrain economic activity”. If OBR officials have read any of my FT reports, they will know full well that higher earners are cutting their hours, turning down promotions or investing excessive sums into pensions to stay under these prohibitive thresholds. I don’t expect the chancellor to do anything about this, but being forewarned is forearmed.

    Get your house in order

    Fears of rising inflation have thrown cold water on hopes that the Bank of England will cut interest rates this year. With 1.8mn homeowners rolling off fixed-rate mortgage deals in 2026, if you need to refinance, get your skates on.

    Recommended

    Montage image of a front door and a line chart

    “The best rates on a five-year fix are still under 4 per cent right now, but as of next week, that may have changed,” says Andrew Montlake, chief executive of mortgage broker Coreco. Yet even if there’s six months to go before your current deal expires, a broker can help you lock into your next fix at the best available rate now. If inflationary pressures retreat between now and then, they can switch you to a cheaper deal.

    Get energised

    Most UK households are on energy tariffs linked to the price cap, and will be exposed to higher costs from July 1 if wholesale prices continue to rise. A large number of fixed-rate energy deals have been withdrawn from the market this week, but if you value certainty, it is still possible move onto a fixed tariff for the next 12 months, albeit at a higher price than it would have cost you last week (see what your existing supplier can do, or use energy switching sites — and note the level of exit fees).

    As we head into spring and summer, the threat of higher energy prices is not quite so panic inducing. But the structure of the UK’s energy market makes us more vulnerable to price shocks. If bills get higher, so will the return on investment from improving your home’s energy efficiency. This is definitely a project I’ll prioritise before next winter.

    Claer Barrett is the FT’s consumer editor; [email protected] Instagram @ClaerB

    financially higher inflation prepped
    Follow on Google News Follow on Flipboard
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Copy Link
    Previous ArticleOil surges above $90 a barrel for first time in Iran war
    Next Article Corsair Sabre V2 Carbon Fiber and Magnesium Gaming Mice Review
    admin
    • Website

    Related Posts

    Over 1mn UK current accounts holding £50,000-plus earn zero interest, research finds

    June 12, 2026

    He Spent 15 Years Amassing SpaceX Shares. Now Comes the Windfall.

    June 11, 2026

    How rising US inflation data is piling pressure on Donald Trump

    June 11, 2026
    Leave A Reply Cancel Reply

    Demo
    Latest Posts

    Tackling big challenges? Get out of the office

    Your Anonymous Data Isn’t as Anonymous as You Think — And Your Business May Be More Exposed Than You Realize

    Is Tether the Coppernose of our time?

    Shoe Carnival, Inc. (SCVL) Q1 2026 Earnings Call Transcript

    Latest Posts

    Subscribe to News

    Get the latest sports news from NewsSite about world, sports and politics.

    Advertisement
    Demo

    We are a digital news platform delivering timely, accurate, and insightful coverage of politics, global affairs, business, economy, sports, and more. Our mission is to keep readers informed with reliable news, clear analysis, and stories that truly matter.
    We're social. Connect with us:

    Facebook X (Twitter) Instagram Pinterest YouTube

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    Type above and press Enter to search. Press Esc to cancel.

    Powered by
    ...
    ►
    Necessary cookies enable essential site features like secure log-ins and consent preference adjustments. They do not store personal data.
    None
    ►
    Functional cookies support features like content sharing on social media, collecting feedback, and enabling third-party tools.
    None
    ►
    Analytical cookies track visitor interactions, providing insights on metrics like visitor count, bounce rate, and traffic sources.
    None
    ►
    Advertisement cookies deliver personalized ads based on your previous visits and analyze the effectiveness of ad campaigns.
    None
    ►
    Unclassified cookies are cookies that we are in the process of classifying, together with the providers of individual cookies.
    None
    Powered by