Inflation

Andrew Sentance, who yesterday stepped down as a member of the Bank of England (BoE) monetary policy committee (MPC), has condemned the Bank's refusal to raise interest rates.

Eurozone inflation fell to a lower-than-expected 2.7% in May.

Savers were dealt a fresh blow recently following the unexpected news UK inflation had hit a 30 month high in April, rising from 4% to 4.5%.

WHY EQUITIES ARE NOT A GOOD HEDGE

The Bank of England's Monetary Policy Committee (MPC) has remained split three ways on interest rates, minutes of its latest meeting show.

Inflation rose to its highest level since September 2008 last month, reversing the previous month's retreat and breaking sterling's five-day decline against the dollar.

Andrew Cole, investment manager for the Baring Multi Asset fund, on how much risk investors should be taking with their portfolios

Sterling jumped across the board after the Bank of England's latest report said inflation is likely to remain above target for longer, fuelling expectations the MPC will act sooner to tackle price rises.

Bank of England governor Mervyn King has warned the extended holiday to celebrate the Royal Wedding last month will hurt GDP growth.

Life company pension funds from Scottish Equitable and Scottish Life are among those which have consistently failed to beat inflation over the past decade, despite holding £14bn in savings, according to Hargreaves Lansdown research.