Investors get risky as inflation remains above target

clock

Investors are being forced to take on more risk as inflation continues to stay above the Bank of England's 2% target, experts said.

The Consumer Prices Index (CPI) measure of inflation fell from 2.6% in July to 2.5% last month, according to the Office for National Statistics' latest figures. The Bank of England is set a target of 2% inflation by the government. Experts said the high rate of inflation was forcing investors to take on more risk in an attempt to achieve 'real' returns. "For investors, we've seen a definite rise in people taking on more risk," said William Hunter, founder of Hunter Wealth Management. "People are caught between the rock of negative returns and the hard place of risk." He added th...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Five years on from Covid: What's next for markets?

Five years on from Covid: What's next for markets?

It is now five years since the start of the UK’s Covid lockdown. Since then, we have seen considerable market and geopolitical-related change. Here, William Marshall looks back over the past five years and also explores what we might expect from markets...

William Marshall
clock 06 May 2025 • 4 min read
Gilt yields fall after Donald Trump backs down in 'tariff war'

Gilt yields fall after Donald Trump backs down in 'tariff war'

US president pauses most additional tariffs

Jonathan Stapleton
clock 10 April 2025 • 2 min read
Reeves defends yearly Budget to avoid 'constant chopping and changing'

Reeves defends yearly Budget to avoid 'constant chopping and changing'

Treasury Committee scrutinises chancellor on Spring Statement

Isabel Baxter
clock 02 April 2025 • 3 min read