- Friday, 19 February 2010More people may be prompted to use their savings as a means of
debt management in the face of rising inflation, it has been claimed.
Chartered financial planner for Informed Choice Martin Bamford said higher inflation is a "cruel trick" for the economy to play on savers and could be particularly damaging.
Yet low interest rates and high price inflation was not the be all and end all for people's investments, said Mr Bamford.
"Low interest rates and high price inflation could put some people off savings, although it could also prompt more people to use their savings to repay debt such as credit cards or mortgages, which usually makes good financial sense," he said.
His comments follow the release of new figures from the Office for National Statistics, which reveals the CPI annual inflation increased from 2.9 to 3.5 per cent in January - the second largest ever increase in the annual rate between two months.
This follows a record increase of one per cent in the annual inflation rate between November and December.
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