CPI inflation rose by 9.0% in the 12 months to April, up from 7.0% in March, according to the latest ONS data. On a monthly basis, CPI rose by 2.5% in April 2022, compared with a rise of 0.6% in April 2021. April's increase is the biggest monthly jump on record and inflation is now at a 40-year high. CPIH inflation, which includes owner occupiers' housing costs, rose by 7.8% in the 12 months to April 2022, up from 6.2% in March.
With some experts forecasting inflation to rise above 8% and stay there for most of 2022, more than 4 in 5 landlords (83%) are ‘concerned or very concerned’ that rising inflation will negatively impact their ability to continue to invest profitably in UK rental property. The survey found that concern about the impact of rising inflation on landlords' portfolio investments is prompting measures to mitigate rising costs, but it won’t drive a wholesale change in investment behaviour.
On a monthly basis, CPI increased by 0.5% in December. CPIH inflation, which includes owner occupiers’ housing costs, rose by 4.8% over the year. Household services, which include gas and electricity, as well as petrol, were among the biggest contributors to the rise. Economists now predict that "multiple interest rate rises" may be necessary in the year ahead.
The popular 50/30/20 rule might help individuals in getting their finances on track for the New Year. Put simply, this rule is designed to help people manage their money in an effective way that should stand the test of time. The basic rule is to divide one's monthly income, after taxes, into three main spending categories which represent percentages.
Sophisticated investors and pension funds are among those who will have access to new types of investment opportunities following changes made by the FCA. The FCA has confirmed that it will be taking forward proposals to create a new type of open-ended authorised investment fund which will help support investment in assets like infrastructure and private equity. Investment in these assets has the potential to generate better returns for investors, including those saving for retirement in defined contribution (DC) pension schemes. The FCA says that currently, some investors are unable, or unwilling, to invest in long-term assets, even though these assets could meet their investment goals.