The Bank of England has revealed that the Consumer Price Index (CPI) is still running at 2.7%.
Kevin Mountford, head of banking, at MoneySupermarket.com, said: “Today’s news that inflation has remained high at 2.7% after last month’s increase is a further blow to savers and struggling UK households, and is a bitter pill to swallow for those planning to make savings goals a big part of their New Year resolutions for 2013.
“It is important savers don’t give up or get put off, and prepare to switch if they are not currently on the most competitive deal. There is a significant difference between the average and top paying rates, and moving to a better deal can go a long way to help savers limit the impact of inflation on their pots.”
Dr Ros Altmann, director-general of Saga, added: “The fact that inflation is still above the Bank of England’s 2% inflation target is dreadful for savers as the combination of low interest rates and high inflation has had disastrous effects on disposable incomes and the spending power of millions of households which means monetary policy has actually damaged significant parts of the economy.
“Annual food price inflation picked up from 3.4% in September to 3.9% in October. This is a significant problem for many older people and lower income households who spend a much larger proportion of their income on food and with energy price increases in the pipeline the pressures on these groups will get worse.”
