Video: UK Inflation At 3% In September 2017
The Office for National Statistics has announced today that UK inflation has climbed to 3% in September 2017, up from 2.9% in August 2017.
The inflation rate was last at 3% in April 2012. Factors such as higher food prices and expensive transport costs have contributed to last month’s five year high.
Wage growth is flat and prices are going up, meaning that you may be feeling the squeeze in your household budget.
Something else to think about is money you have saved. £10,000 in savings now needs an interest rate of 3% just to have the same buying power in a year’s time, if inflation stays the same.
Think about it like this, with inflation at 3%, your £10,000 only has the buying power of £9,700 in a year’s time. Your money could actually be losing buying power in a bank deposit account.
One possible solution could be a Stocks & Shares ISA. Our balanced portfolio has returned 8.27% between September 2016 and September 2017 and our aggressive portfolio 12.85%. So, investing in stocks and shares may produce a better outcome for you.