UK Inflation At Highest Since April 2012

The Consumer Prices Index (CPI) which is the measure of inflation that the government use as a target, has climbed to 3% in September 2017.

The Retail Prices Index, another measure of inflation has reached 3.9%.

Much of this inflation is due to the fall in the pound since the brexit vote. It will be interesting to see if these inflation figures will have any affect on the Chancellors Budget next month.

These Inflation rates coupled with the low interest rates means that cash savings are being eroded by inflation.

If these cash holdings are to be held over a long period of time this can have quite a large affect on the purchasing power of your savings and you may wish to consider savings options which will have a greater chance of outperforming inflation.