Post Office launches inflation-linked bond

The five-year bond guarantees to pay interest at 0.5 percentage points above the retail prices index (RPI). It is also offering a shorter-term version, paying 0.25 points above RPI after three years. Both RPI and CPI (consumer prices index) fell in December, according to the Office for National Statistics (ONS). CPI fell to 4.2% from 4.8% in November, while RPI - which includes mortgage interest payments - fell to 4.8% from 5.2%. The Post Office deal can be opened with a minimum of £500; the maximum holding is £1m. The bond is due to remain open until 29 March, but the Post O...