Inflation is back. After two years when consumer prices in the UK barely rose, the annual rate of inflation has shot above the Bank of England’s target of 2% in 2017.
The Bank forecasts that consumer price inflation will remain above 2% in each year until 2021. While nowhere close to historic highs, higher inflation stands in contrast to near record low interest rates offered on cash savings.
To protect your purchasing power over time, your savings need to grow at least as quickly as prices are rising. Here are four ways that you could navigate the challenge posed by rising inflation, and help protect the value of your savings from its corrosive effects.