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INFLATION

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The UK's main inflation rate jumped sharply to 2.7% in October, catching out forecasts and prompting fresh worries it will remain above target for longer than feared.

The Bank of England's quantitative easing (QE) programme, now at £375bn, and its move to slash the base rate to a record low of 0.5% has helped stimulate inflation and stave off a deflationary environment but has left investors searching for income. It has also left many seeing wages eroded by inflation, with pay rising more slowly than CPI. Investors used to the benign environment that lasted for years - when  rates were high and inflation was below base rate - are now having to re-think portfolios. One solution is to invest in high-yielding equities - something many investors hav...

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