Rohan Sivajoti, Advisory Services Director at online investment advice business eVestor reacts to this morning’s news that inflation has risen to 0.3%.
Rohan Sivajoti said: “We have taken a small step away from the threat of deflation, with increases in the cost of motor fuels, food, alcoholic beverages and clothing pushing up the headline rate. Yet, even with the highest inflation rate since January 2015, we are still a long way off the 2% target that the Bank of England is trying to achieve.
“Nonetheless, investors cannot rest on their laurels. With inflation on the rise, those waiting on the side-lines in cash need to use this time to act and put their money to work. Equity markets in particular have been very volatile so far this year, but the falls in share prices we have already seen mean valuations for many stocks are now far more attractive. Given the era of earning 5% interest from bank accounts is long gone, now represents an opportune time to think about investing in equity and fixed income markets.”