Getting the right mix

The 'i' word has raised its head again. After years when inflation was considered more or less under control, suddenly it has reappeared on the political and economic agenda. The possibility of inflation hitting 6 to 7% is even mooted, heights unknown in the recent past. In March the consumer price index stood at 2.5%, while the alternative measure which includes housing costs, the retail price index, was 3.8%. Salaried workers with their annual wage increases may not be too concerned, but the picture is different for retirees. Even the politically acceptable 2.5% inflation level for some...