An
investment advice firm has said that a rise in
Retail Prices Index inflation by 0.6 per cent in the last month
means that inflation is still a possibility.
Interactive
Investor has warned that those countries whose central
bank systems have implemented quantitative easing will be the
most concerned about sudden inflation as such policies could reduce
the
dividends from
stocks and shares .
Potential weakness in the
currencies of G7 countries along with inflation is also likely
to lead to more
investments made into gold as a hedge against risky bets,
according to the company.
However, a representative for Interactive Investor said: In
general, most retail investors, rather than
buy gold directly, will buy it through a commodity-focused
investment fund or exchange-traded fund.
National
Savings and Investments recently announced the launch of new
issues of its inflation-beating Index-linked Savings
Certificate accounts, offering
tax-free savings of up to £15,000.
