Inflation rises to 2.9% - Savings - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Inflation rises to 2.9%

Inflation rises to 2.9%

Category: Savings

Updated: 16/07/2013
First Published: 16/07/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Inflation increased to 2.9% in June, according to figures release by the Office for National Statistics (ONS) today.

The ONS reported that Consumer Prices Index (CPI) inflation reached a 14-month high last month, rising from 2.7% to 2.9% due to higher fuel and clothing prices.

The rise is a further blow to the UK's hard-hit savers.

Research by reveals that a basic rate taxpayer at 20% will need to find a savings account paying 3.63% per annum to negate the effects of tax and inflation. Currently, however, there is not a single savings account that will earn savers the return they need.

In contrast, one year ago there were 156 ISAs and 122 non-ISAs that beat tax and inflation.

"It was once unthinkable that a savings account would merely provide a safe haven for your money rather than a place to watch it grow. Sadly, that is today's reality," said Editor Sylvia Waycot.

"Watching the spending power of savings diminish, especially if it is needed to supplement income, is today causing heartbreak for many and could lead to escalating risk in the search for a return."

What Next?

Compare the best savings rates
Find all the best cash ISAs with Savings search
Download your free guide to ISAs

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Just 47% have money in a savings account

We’re often told of the importance of saving, yet unfortunately, the message doesn’t always get through. Indeed, research shows that just 47% of those surveyed have money in a savings account, and 17% have no savings or investment whatsoever.

How much will you save this year?

Many of us have set savings goals for the year ahead, and planning to budget better and save more will be at the top of many financial resolution lists. But how much are you hoping to squirrel away? Encouragingly, many people have impressive targets.

How to make your savings go further this year

The start of a new year is always a good time to sort out your finances, and this year, focusing on your savings should be at the top of the agenda. We’ve got a few tips and tricks to help make your savings go further in 2017.