Savers’ struggles to maintain the purchasing power of their money are set to continue despite inflation seeing its largest monthly fall since April 2009 during December.
The Office for National Statistics said Consumer Prices Index inflation fell to 4.2% last month, down from 4.8% in November, thanks largely to a slowdown in the rise in prices of fuel and clothing.
Yet despite the drop, recent research data reveals that the task facing those searching for an inflation-beating savings account remains a difficult one. A basic rate taxpayer needs to find a savings account paying 5.25% per annum in order to stop their savings pot effectively eroding away, of which only eight standard accounts are currently available, all of which are fixed rate ISAs. A higher rate taxpayer would require an account paying at least 7%, none of which are currently available.
