Paul Tucker,deputy governor of the Bank of England, has warned inflation will be higher than expected this year, following yesterday's unexpected rise in CPI.
The UK Consumer Prices Index (CPI) climbed in March as higher food and clothing prices pushed inflation up to 3.5%.
The Bank of England's Monetary Policy Committee (MPC) has increased its quantitative easing programme by £50bn as it looks to shore up the UK's ailing economy.
The government has said it will not issue CPI-linked gilts in 2012-13, saying the move would not be cost effective and would involve "a number of risks".
As the asset class recovers its ‘safe haven' status, Neil Gregson, co-manager of the JPM Natural Resources fund, examines what the future holds for gold.
Encouraging people to save is seldom easy, least of all when inflation is eating into the purchasing power of capital and returns.
Investors have come under increased pressure to inflation-proof their portfolios as a fresh spike in CPI and RPI raised doubts levels will drop back to the Bank of England's 2% target in 2012.