Finance: Expert discusses impact of inflation on a savings account
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Inflation figures were released today as the Consumer Prices Index (CPI) fell from 2.5 percent in June to two percent in July. This is the first time the rate fell to the BoE’s two percent target in two months.
Specifically, the dip in inflation was driven by price falls in clothing and footwear.
This “largely offset” price rises seen in transport, according to the Office for National Statistics (ONS).
Commenting on the matter, Neil Messenger, Director for Client and Markets at 1825, said: “July’s inflation dip is likely to be transitory – so savers shouldn’t get too comfortable.”
“Businesses continue to grapple with inflationary pressures as the economy re-opens and the Bank of England now forecasts the headline measure to hit four percent by the end of the year, doubling the Government’s two percent target.
more to follow…
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