Inflation: ‘”Two out of three ain’t bad”, welcome news for savers as inflation falls to new low

Inflation: ‘”Two out of three ain’t bad”, welcome news for savers as inflation falls to new lowIt’s not often you get to quote Meatloaf in an article about inflation and savings but today we’ll make an exception. Over the past few years savers have been hit hard from three sides: 1. High inflation, which was eroding the value of capital, with interest rates higher than the rate of price increase 2. Low interest rates, pushed down by the ...

The Global Month Ahead – An insight into July 2011

In our regular feature Seven Investment Management (7IM) look forward to what the month ahead might hold. United Kingdom - Fixed Income Outlook Key Issues The IMF paper calls it “financial repression”. This is where the government channel savings to themselves cheaply that could go elsewhere. Base rates at 0.5%, gilts at 3% and inflation at 5% are a stealth tax on savers and pension funds that looks set to continue for some time to come. The Monetary Policy Committee’s forecasts are for inflation to gradually rise through to the end of the year and then fall back to 2% ...

The Global Month Ahead – An insight into April 2011

In our regular feature Seven Investment Management (7IM) look forward to what the month ahead might hold. With the effects of the Japanese earthquake still being felt on the world's stock markets and the spectre of a prolonged conflict in Libya what will April hold for world markets? United Kingdom - Fixed Income Outlook Key Issues The UK has some relatively good fundamentals in that the government is addressing its large deficit in contrast to the situation in the US and Japan. The 28,000 rise in unemployment in March, with public sector cuts to come, will test the government’s resolve ...

How can your savings beat inflation?

Inflation rose last month, with CPI increasing to 3.7% in December. The Bank of England predicts that inflation will decrease towards the end of the year and into 2012. However, the opposing view is just as prominent with many believing we are entering a period of ‘stagflation’ where the economy is stagnant but inflation remains relatively high. Interest rates are at an all time low, and are likely to stay low, despite calls for them to rise.