Savers suffer further rise to inflation

Savers have been hit by further increases to the rate of inflation, it has been claimed.

According to the Office for National Statistics, consumer price index CPI inflation accelerated by a further 0.3 percentage points in April to 3.7 per cent.

Meanwhile, retail price index inflation, which includes mortgage interest payments, rose to 5.3 per cent from 4.4 per cent in March.

Higher petrol prices and tax increases since the March Budget are said to have further increased the cost of living in the UK, and diminished the value of consumer savings.

Those relying on an income from their cash reserves may be hoping the Bank of England takes action to increase interest rates, but there is no sign of it doing so in the near future.

The base rate has remained at 0.5 per cent since March 2009, as part of economic stimulus measures designed to return the economy to a sustained period of growth.

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2010-05-19 13:11:51 © Moneyextra.com