Kevin Brown, savings specialist at Scottish Friendly, comments on inflation

Signs of an inflationary pressure cooker

“Today’s inflation data will trouble financial markets and policymakers alike. It follows higher inflation data from the US, and suggests inflationary pressures are heating up, even before the impact of any tariffs. In the UK, it comes hot on the heels of strong wages and GDP data, and implies that any improvement in economic growth may have an inflationary sting in its tail.

“Energy prices are ticking higher, with the latest energy price cap rise taking effect on 1 January.  There are still concerns about the impact of National Insurance rises on businesses. These factors combined are likely to be enough to keep a rate cut off the table for March.

“With the threat of inflation still looming, savers need to ensure that their nest-eggs are well-insulated. They may want to look to the stock market as it remains a strong defence against the long-term corrosive effects of inflation.”