Adam Leci: Modelling inflation for clients

Recently, I've seen some worrying posts on social media, and we've had a number of phone calls and emails from concerned advisers.  Why? Headlines like "inflation reaches 30-year high" are provoking clients into challenging the inflation assumptions their advisers use in cashflow models.  While the adviser knows they're right, perhaps they're struggling to justify to clients that it's appropriate still to use, for example, an inflation figure of 3% when inflation is sitting at nearly three times that mark. Don't panic! It's important to remember that cashflow models are long-term i...