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

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

Inflation hit 4.2pc in October and there will be growing unease at the Bank of England that rapidly rising prices are causing living costs to spiral. The Consumer Price Index is at the highest level since 2010 on the back of rising petrol and household energy costs. This is well above the Bank of England's 2pc target, and significantly higher than experts had predicted. UK inflation is expected to hit 5pc by April next years. Despite this, the central bank held interest rates at 0.1pc earlier this month , the lowest ever level. However, there will be pressure on policymakers to increase to this 0.25pc on December 16. 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 4.2 pc and is expected to climb as high