Kevin Brown, savings specialist at Scottish Friendly comments on today's news that inflation has risen to 2.2%
“Today’s inflation reading, while not welcome, was largely expected. The Monetary Policy Committee (MPC) made clear when it announced the first rate cut at the start of the month that its strategy of keeping rates high had helped return inflation to target. However, it also said that it expected a temporary rise in inflation this year. It has just arrived early.
“This is an anticipated headache for the MPC but it also presents a conundrum for households looking to grow their financial resilience through savings and investments. With rates likely to remain high for longer, households will be doing the mental maths to see whether those high rates are enough to offset the inflationary drag on the real terms value of their nest eggs if they remain in cash. Or whether now is the time to invest in stocks and shares using a tax-efficient wrapper in order to provide the best possible chance to mitigate against the erosion of inflationary and fiscal drag.”
Contact for more information:
Kevin Brown, PR & Communications, Scottish Friendly
07512194336
Notes to editor:
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, Galbraith 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.