Debt management plans may be necessary to combat rising inflation
Debt management plans may be necessary to combat rising inflation
Monday 1st February 2010
Latest figures from the Office for National Statistics (ONS) show that the Consumer Price Index (CPI) measure of inflation rose 1.0 per cent between November and December last year to reach 2.9 per cent - the largest ever annual increase in the rate between two months.
Yet director of financial website The Motley Fool, David Kuo, said consumers should be prepared for worse to come.
"Inflation is a problem, and inflation will rise," he said.
"Inflation is something that people need to be very aware of. The Bank of England and the government can't really do much about inflation because they say that they will sort out inflation later on, once they get economic growth."
People should address the inflation issue themselves, said Mr Kuo.
"They need to make sure that if they have £110 extra each month they have got to do something with it. If you do nothing then that money will just shrink as a result of inflation."
The Bank of England Monetary Policy Committee voted in January to hold the base rate at its record low level of 0.5 per cent.
F&C Investments spokesman Ted Scott told the Telegraph that the recent rise in inflation compounded fears that the first rise in official interest rates may come sooner rather than later.
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