Inflation rate set to rise tomorrow – saving and investing tips for households | Personal Finance | Finance

Combined with the increase in energy bills being experienced by Britons across the country, the cost of living crisis does appear to be ending anytime soon as “households are feeling the squeeze”. Tomorrow (June 22), households will learn how much the UK’s Consumer Price Index (CPI) inflation has gone up since May. As it stands, the country’s CPI inflation rate sits at nine percent but many experts believe this will rise even further this week.

While a jump to 10 percent is expected tomorrow, many financial analysts believe inflation will reach 11 percent this autumn.

The continuous increases in inflation over the last couple of months has filled savers and investors with anxiety.

Money that is held in savings accounts has not grown much in previous years due to historically low interest rates.

However, with the inflation rate on the rise, savings are now in danger of losing value in real terms.

READ MORE: ‘I didn’t eat for a week!’ Mum of three devastated after losing £4,000 in bank scam

On inflation’s impact on the cost of living, Connor Campbell, a personal finance expert from NerdWallet, said: “Clearly, the Government must go beyond one-off financial support and develop a long-term economic recovery plan to help the UK emerge from its current economic predicament.

“Not all households, however, can afford to wait for such measures to be announced. Certain steps can be taken if you are seeking assistance.

“Free support is available in the form of debt charities StepChange and Citizen’s Advice, if you want to air your concerns or take steps to develop a financial recovery plan, while the Trussell Trust has a postcode tool that can allow you to find a food bank in your area.

“Price comparison sites could also offer some solutions, by allowing households to compare prices for a variety of necessities, from groceries to energy providers.”

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In light of the likely hike to the inflation rate tomorrow, financial experts are sharing their savings advice for those who are looking to evade the cost of living crisis.

The money experts from www.OnlineMoneyAdvisor.co.uk said: “With inflation rising at record levels, more and more British households are feeling the squeeze on their bank accounts. 

“Interest on savings accounts can easily be gobbled up by price increases – therefore, it’s essential that you check your money is earning as much interest as it possibly can. 

“As a general rule of thumb, the minimum amount of interest that savings accounts should pay is 1.5 percent, but if you’ve not switched your account in years, you might even be earning less. 

“So, if you haven’t already, seek out the highest rates available right now and move your spare cash there, to ensure you’re gaining every penny of interest you can.”

The financial expert also encouraged savers to consider investing in a bid to beat the rising inflation rate, however they also acknowledged that this also comes with risks.

They added: “If you’re looking for better returns, or extra money beyond your emergency fund, it might be worth considering investing.

“But we’d advise that you speak to an independent financial advisor first, if you’re serious about investing, so that you fully understand exactly what you’re getting into.

“Also, they usually offer free, no-obligation chats to start off with, so it’s a win-win.

“Typically, equity investments, like stocks and shares, offer the best potential for high returns because they usually beat inflation in the long run.

“If you own stocks, you’re entitled to a portion of the profits that the company makes, and they can increase their share price to keep up with the costs of inflation.

“While equities have proven to be one of the most effective ways of beating inflation, the instability of the stock market might mean you could stand to lose all – or at least part of – your investment, so you need to be patient and cautious with this.”



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