Summary
Interest rates may be low but a drop in inflation makes money go further, says Teresa Hunter
DESPITE low interest rates, savers can now enjoy the best returns in five years, after inflation is taken into account, according to savings researchers at Moneyfacts.See the full content of this document
Extract
Savers Can Cash in On Fall in Prices
In general, the cost of living, as measured by the Retail Prices Index fell in June by 1.6 per cent compared with a year ago. Even the government's preferred inflation index, the Consumer Prices Index, from which housing costs are stripped out, slipped below its target 2 per cent to 1.8 per cent.
While falling prices are bad news for anyone with debts, they can bring some comfort to savers, forced to endure low interest. The fall means GBP 10...See the full content of this document
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