Inflation warning signals flashing
Kevin Brown, savings specialist at Scottish Friendly comments on this morning’s inflation figures: “A 0.6% spike for the inflation figures is extremely worrying as we enter the winter months. It is a clear shot across the bows of both rate setters and the Government at a time when rates are being cut and businesses are warning of inflationary tax increases.
“It will serve as cold comfort for households, too, as energy bills are set to rise again in the coming months. Looking at the drivers of this spike, it is broad-based with just two of the twelve CPI categories showing any signs of sustained price decreases. This suggests that pressure is building back up for price rises on a wide spectrum. Core inflation is also ticking back up, suggesting the fight we are facing with price rises is far from won.
“All eyes will now turn to a Government, and rate setter response to these unwelcome figures. We will have to wait till 19 December for the next Monetary Policy Committee (MPC) meeting for an indication on the base rate. In the meantime, households need to ensure they are prepared for unexpected costs as much as is possible under the circumstances. Having a rainy-day fund is key. Beyond that, any long-term saving should be placed where it has the best opportunity for long-term growth. At the moment with savings account rates falling, investing could be a better alternative.”
-ENDS-
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Contacts details:
Contact for more information:
Kevin Brown, PR & Communications, Scottish Friendly
07512194336
Disclaimer
Remember that the value of investments can go down as well as up and you could get back less than you paid in.
Past performance is no guide to future results. Tax treatment depends on individual circumstances which can change in the future.
Editors notes:
About Scottish Friendly
Scottish Friendly is a leading UK mutual life and investments organisation. It provides investors and their families with a wide range of investment and protection solutions and provides life and investment products and services to other financial organisations.
Scottish Friendly has roots stretching back to 1862. Established as the City of Glasgow Friendly Society, its name changed in October 1992 when it took over Scottish Friendly Assurance.
The Group has flourished through a three-part growth strategy of organic growth, mergers and acquisitions, and business process outsourcing.
Scottish Friendly, Scottish Friendly House, 16 Blythswood Square, Glasgow, G2 4HJ
Scottish Friendly Assurance Society Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority.