Is deflation good or bad for your money?

Is deflation good or bad for your money?For the first time since Harold Macmillan was Prime Minister Inflation, as measured by the Consumer Prices Index (CPI), turned negative last month. But what does it mean for your savings, pensions and investments, we have the answers. But, first things first though, exactly what has happened? To put is simply, the CPI (usually) measures that rate at which prices are rising. It does this by comparing a ‘basket’ of goods and services from one month to the next and reporting the change. For the first ...

Inflation: Misery for savers as no fixed rate bonds beat inflation

iStock_000001293543_ExtraSmallThe news yesterday that the rate of inflation rose in May heaped more misery on struggling savers, most of whom will now find it impossible to get a real return on their savings. Figures from the Office for National Statistics (ONS), show the Consumer Prices Index (CPI) rose to 2.7% in May, up from 2.4% in April. The rise was in line with predictions from experts, with the Bank of England also suggesting that inflation could hit 3% before the end ...

Q & A: Everything you need to know about the ‘Help to Buy’ scheme

Everything you need to know about the ‘Help to Buy’ schemeSince the credit crunch both the Government and the Bank of England have taken significant steps to protect and kick-start the housing market. From keeping base rate at 0.5% for four years, to the NewBuy Scheme and then the Funding for Lending Scheme, both existing homeowners and prospective first time buyers have had significant help over the past few years. After an initial dip in house prices of ...

Rate of inflation creeps up, whilst RPI is downgraded

Rate of inflation creeps up, whilst RPI is downgradedThe latest figures from the Office for National Statistics (ONS) show that inflation crept up in February, pushed higher by rising energy prices. The Consumer Prices Index (CPI) rose to 2.8% in February having been stuck at 2.7% for the past four months. At the same time the Retail Prices Index (RPI), which is no longer being classed as a ‘national statistic’, actually fell slightly from 3.3% in January to 3.2% in February. According to ...