Rising inflation: tips to protect your investments, property, savings and pension

Rising inflation: tips to protect your investments, property, savings and pension

October's inflation figures will be released tomorrow amid growing unease at the Bank of England that rapidly rising prices are causing living costs to spiral. Inflation reached 3.1pc in September after furniture, household goods and food all pushed the average level of prices and ate into the value of money. This is well above the Bank of England's 2pc target for inflation, as the full impact of rising energy costs also translated into higher average prices. Meanwhile, financial markets have bet that UK inflation will surge above 6pc for the first time in decades. Despite this, the central bank held interest rates at 0.1pc earlier this month , the lowest ever level. How much of a risk is rising inflation, and how can you protect your finances? Telegraph Money has the answers. What is the rate of inflation, and why are prices rising? Inflation measures the rate of increase in the price of goods and services. The Consumer Prices Index, which forms the basis for the Government's inflation target, looks at the cost of hundreds of items, from food to cinema tickets, to track any rise or fall in costs. Inflation has already risen to 3.1pc and is expected to