Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Falling inflation is good news, isn't it?
Of course it is. It should mean lower price rises and less pressure on squeezed incomes. The official inflation rate has fallen to 2 per cent, which means it is at long last in line with the Bank of England's official target for the first time since 2009.
So what's the problem?
This week, for a change, we're bringing you good news. In particular, the news is good for savers as more accounts will now beat inflation, leaving more people actually getting a positive return on their nest-eggs. In fact, almost 100 accounts now match or beat basic-rate tax and inflation, and there are even 60 matching or beating higher-rate tax and inflation. That compares favourably to last July when not one account beat inflation for both basic-rate and higher-rate taxpayers.
Does that mean things should start to get better for savers?
Hopefully – and about time. After all, savers have been hammered by four years of above-target inflation and low interest rates. They're due a bit of a break. "If interest rates rise, savers should have more choice in picking a decent savings account, which may mean that, in particular, vulnerable people such as pensioners may soon be able to afford to switch the heating back on," said Anna Bowes of SavingsChampion.co.uk.
But is this a real turning point?
If you're asking whether the lower rate means we're into economic recovery then experts aren't convinced that's the case. Jason Hollands of the adviser Bestinvest said: "Despite bullishness over the recovery, the real picture is probably more fragile than some headlines suggest."
So there may be trouble ahead?
If we are into an economic recovery then that could mean official interest rates climbing sooner than expected, maybe even this year. That would hit those who have stretched themselves to buy a home in recent times.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments