How savers can cope with rising inflation
Informed Choice chartered financial planner Martin Bamford was quoted in the Independent on Sunday today, in an article looking at how savers can cope with rising inflation.
The latest Consumer Prices Index (CPI) inflation figures for the year to August 2010 show inflation remaining at 3.1%. With the average interest rate available on instant access cash savings at only 0.77%, savers are continuing to lose money on their cash deposits in real terms.
Martin was quoted within the article giving his verdict on the new inflation-linked corporate bond fund from M&G.
“It will appeal to those investors who are concerned about the future outlook for price inflation. However, it is important to remember that the gilt yields are near all-time lows, and with investment-grade corporate bonds closely correlated to gilts, now could be a bad time to be buying into some corporate bonds,” says Martin Bamford from Informed Choice, an IFA.
You can read the article in full here.