CPI inflation down, but savers still hurting

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CPI inflation down, but savers still hurting

Tue 13th Dec 2011

Consumer price inflation (CPI) may have fallen from five per cent in October to 4.8 per cent last month, but this is doing little to help UK savers who continue to see their funds being eroded.

Defaqto has argued that older Brits in particular are being impacted by this ongoing high level of CPI, as they typically supplement their monthly income with savings interest.

David Black, Defaqto's insight analyst for banking, said: "While all savers continue to suffer from inflation being very much higher than the bank base rate, those that rely on monthly interest from their savings accounts ... are also being badly affected."

He added that while inflation is predicted to fall over the coming months, it is still a real struggle for many people in the present financial climate to meet their financial responsibilities.

According to research carried out by Santander, a third of UK households plan to raid their savings to pay for festive treats this year, with a total of £6 billion to be withdrawn.

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