The three groups that will be hit by the new inflation high

Inflation. It is enough to fill anybody with dread. Money only stretches so far, and it is even harder to stretch a pound when it is only worth 97.7 pence. Well, that is the reality after inflation was recently announced to have exceeded the Bank of England’s 2% target to a level of 2.3%. The Office for National Statistics released a bulletin on the 21st of March, revealing inflation to be much higher than previously thought. This news has come as a surprise to many, and will affect three ...

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....