Be more aware of inflation risks, urges expert

Consumers and investors need to be more aware of the risks associated with rising inflation.

This is according to director at The Motley Fool David Kuo, who said that the issue ’is something that people need to be very aware of’.

Figures released by the Office for National Statistics last week revealed that inflation saw its largest-ever annual increase during December, something that could affect investors and those working in the private banking sector.

The consumer prices index rose by one per cent between November and December last year, taking the figure to 2.9 per cent.

’Sterling is falling in value - that means that everything we import from outside is costing us more,’ Mr Kuo remarked, adding that higher fuel prices are adding to the problem.

And the Bank of England is unable to address the issue at present, he observed, as it is saying it will sort out the problem at a later date, once growth returns to the economy.ADNFCR-2318-ID-19594817-ADNFCR