UK inflation rises to 4.4%

According to the Office for National Statistics, the UK Consumer prices index rose to 4.4% in July, which is an increase of 0.2% from 4.2% in June 2011.

According to the Office for National Statistics, the UK Consumer prices index rose to 4.4% in July, which is an increase of 0.2% from 4.2% in June 2011.

The Retail Prices Index (RPI) remains unchanged and is still a staggering 5%.

Although the Bank of England remains confident that inflation will return to its target level in the next 2 years, it does mean that savers will be losing their purchasing power in the meantime.

If you have not already taken advantage of the NS&I Index Linked Certificates and can afford to leave up to £15,000 untouched for 5 years, you should seriously consider this.  The Index Linked Certificates pay a rate of 0.5% above inflation, and should be on everyone’s “buy” list.

Don’t forget to check the interest rate you are getting on your Cash ISA’s and deposit accounts.  If you have had the account for more than a year you could well find that the rate has reduced considerably and you may only be getting as little as 0.10%.

The savings providers rely on customer apathy and you should not allow them to win.

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