Saving sucks so investing is best

Why keeping cash on deposit drains your wealth

- WARREN SHUTE

The American economist Milton Friedman once said: "Inflation is the one form of taxation that can be imposed without legislation." Yet for most people, it slips under the radar, affecting our spending power without us giving it a second thought.

In recent years, inflation has made headlines more than usual, from the post-Covid stimulus surge to its gradual retreat.

I first raised concerns about the risk of rising inflation over three years ago. To me, it felt inevitable. Professional investors and economists should not have been caught off guard by its rise. What was surprising, however, was just how far and how fast it went.