Well, yes, obviously

Millions of savers are losing money as they are caught between poor returns and a rising cost of living, figures show.

If returns are below inflation then of course you\’re losing money.

Which brings us to our favourite retired accountant. He\’s been advocating for years that we should all be investing in \”green bonds\” to provide for our retirement. These would pay 3% he says.

More recently he\’s been agreeing that we should have a higher inflation target: 4% instead of the current 2%.

That is, setting up the system so that any and everyone who saves for a pension loses money while doing so.

Great, eh?

3 thoughts on “Well, yes, obviously”

  1. Brian, follower of Deornoth

    That environmentalism can only prosper by stealing existing wealth as well as future wealth is surely not news…

  2. I wish reporters could get the tense right here. That quote should read “have lost money.” The CPI data tell us how much prices rose in the year to January. This is irrelevant now. Instead, what matters is prospective inflation. If you believe the Bank and economists (I know), this’ll be under 2% over the next 12 months. With many accounts paying 3%, this means a basic rate tax-payer will – just – earn a positive real return over the next year.

  3. CPI statistics are notoriously bad for understating what is happening. For example, in the US, policymakers routinely strip out energy and food for being “volatile” elements, but they continue this not just when looking at monthly data, but also for annual data – by which time the seasonal factors should have dropped out.

    As Tim no doubt recalls, it was our own sainted Prime Minister who chose to drop housing costs from the Bank of England’s inflation target, so ensuring that rising house prices played less of a role in alarming the BoE about the economy.

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