Inflation: Good news for savers as inflation hits 2% target?

Inflation DecFigures released yesterday show that inflation finally hit the Government’s 2% target of in December, but is this good or bad news for savers? According to data released by the Office for National Statistics (ONS), inflation, as measured by the Consumer Prices Index (CPI), fell to 2% in December, down from 2.1% in November. It is the first time the Bank of England, the organisation tasked with keeping inflation at the 2% target, has been able to do so since November 2009....

Light at the end of the tunnel for savers as inflation drops sharply

Inflation RateNew figures have shown the rate of inflation dropped sharply last month. The data released today by the Office for National Statistics (ONS), shows the rate of inflation in October slowed dramatically to 2.2%, from 2.7% in the previous month. The sharp fall takes the rate of inflation to its lowest level for a year and will allow the Bank of England, who is targeted to keep inflation at 2%, a small sigh of relief....

Savings: Is the price to beat inflation worth paying?

iStock_000007329749XSmallEven though inflation has started to fall, the clamour for savings accounts which beat inflation has never been stronger. But whilst it’s important to beat inflation, is this the only thing savers should be taking into consideration when selecting a savings account? Why is it important to beat inflation? Simply put, if your savings don’t grow by an amount equal to inflation, the buying power will be reduced and you will lose money in real terms. To put it another way. If at ...

Savings: Inflation wipes off 10% of the value of savings

A new report by Moneyfacts has shown that the recent high levels of inflation have wiped nearly 10% off the real value of people’s savings over the past five years. Savers, and those people on fixed incomes, for example retirees who have bought a level Annuity, have seen the destructive power of inflation over the past couple of years. Moneyfacts says that £10,000 saved five years ago would now have the buying power equivalent to £9,208, assuming basic rate tax had been deducted and an average rate of interest received....