Benefits :
How to stay ahead of the inflation curve
By Motshabi Nomvethe , PPS Head of Technical Marketing
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You should always determine whether the total cover you have bought will cover all your assets as they increase over time .
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The recent rise in inflation – not only in South Africa but worldwide – has made millions of people tighten the proverbial purse strings . According to Statistics South Africa , the country ’ s consumer price inflation ( CPI ) surged to a 13-year high in June , reaching 7.4 % year on year . This was particularly due to the 45.3 % increase in fuel price ( again , year on year ).
Believe it or not , South Africa is by far not the country that currently suffers the highest inflation rate . According to World Population Review , inflation in Venezuela reached 1 198 % in Jan ( year on year ). Even in developed countries , inflation has soared . In the UK the Financial Times reports that inflation is projected to hit 18.6 % whereas in the US , it was 8.5 % year on year in July .
Impact
Inflation impacts people ’ s financial planning and their buying choices .
The drastic impact the increased fuel price has on people , is a good example to explain inflation with . A year ago – in November 2021 – the inland price for one litre of 95 octane fuel was R19.54 . By July , it skyrocketed to R26.74 per litre . The same applies to the amount that your insurance policy will pay in the future .
When considering inflationary impacts on insurance , Craig Comrie , CEO of Profmed – an affiliate of PPS – in his article in
the July edition of The Professional , highlights a very important issue –
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