Discover the value of your entire pension pot now.

Get Pension Audit Sheet
Oaklands Details

0121 355 4455
info@oaklandswealth.com
12A Duke Street
Sutton Coldfield
West Midlands
B72 1RJ

Oaklands Wealth Management Ltd

Spiking inflation: what’s going on?

In April, UK inflation reached a level not seen since the early 1980s

Monthly CPI price change since 1990

Source: ONS.

UK inflation was widely expected to jump in April as the new Ofgem utility price cap took effect. Nevertheless, when the April annual CPI rate of 9.0% was announced in mid-May, it dominated the headlines.

In all the shock-horror coverage, some additional context was generally missed:

  • Prices rose by 2.5% between March 2022 and April 2022 – more than they had risen in the entire year to April 2021. Study the graph and you will see there was one month to beat that April 2022 for price rises – April 1991 after the standard rate of VAT rose from 15% to 17.5%.
  • Two energy-linked sectors – Housing and Household Services (which includes utility bills) and Transport – accounted for about half of the overall inflation rate. There is nothing the Chancellor or Bank of England can do about global energy prices.
  • In April, ‘core inflation’, which strips out energy, food, alcohol and tobacco prices, was running at 6.2%. In April 2021, the same measure was running at 0.7%. That gives a good indication of how broadly prices have increased.
  • The rate of monthly CPI increases started to pick up from April last year, so the next few months will probably see little change in the annual inflation rate.
  • All other things being equal – a dangerous assumption – the next step up in inflation will be in the October rate, due out in November, around the likely time of the Autumn Budget. The reason for the increase will again be a change in the Ofgem price cap. In October 2021, the cap’s increase was 12%. It means households could see their energy bills rise in October to £2,800 a year from the current cap of £1,971. At the same time, the Bank of England is forecasting that the inflation will peak at “slightly over 10%” in the final quarter of 2022.

Europe and the US are experiencing similar inflationary spikes, although at the time of writing the UK was, unfortunately, in the lead. The one solace is that the Bank of England states, “CPI inflation is projected to fall to a little above the 2% target in two years’ time.”

Interested in finding out more?

Seeking a second opinion on your financial future costs you nothing.

Simply call our friendly team on 00121 368 5624 or drop us an email to appointments@oaklandswealth.com to arrange a confidential chat.

Oaklands Wealth Management, founded by Helen Blackburn in 2004 advises clients around the Midlands on retirement planning, pensions & investments.

Her firm holds British Standard BS 8577 for client service & investment process.

Minimum investment is £500,000 (£650,000 for pension transfers).

IMAGINE YOUR PENSION & SAVINGS 100% UNDER CONTROL…
Arrange a chat

Similar articles

OUR INDEPENDENT FINANCIAL ADVISORS

Click to view profile
Click to view profile

THINKING OF MOVING FROM YOUR EXISTING ADVISOR?

It’s easy to move on from another advisor.
We’ll handle everything.

All that’s needed is for you to sign some letters of authorisation and we’ll do the rest.

None of your investments will be switched into new funds until you’ve agreed with our recommendations and you’re fully happy with any changes we propose.

Schedule a chat

7 KEY FEATURES OF THE OAKLANDS WEALTH MANAGEMENT SERVICE

British Standard BS 8577 Awarded Service

12 Month Money Back Service Guarantee

Lifetime Cashflow Planning

Risk Adjusted Personal Investment Portfolio

ISO 222222 Certified Financial Advisors

Monthly Fund Analysis

2 Investment Portfolio Reviews Per Year

A WORD FROM OUR CLIENTS...

“When my circumstances changed through divorce I visited Helen at Oaklands Wealth where she very clearly explained all my options in a way I understood. I’m very pleased with the outcome from the pension and investment advice and Helen couldn’t have been more friendly and helpful.”

Janet Chatterley

A WORD FROM OUR CLIENTS...

“Following my divorce, Helen took complete control of consolidating all my individual pensions into one product after advising me carefully what she considered the best product for my needs and risk profile. She explained everything clearly in language I understood, and my investment is achieving far greater growth than expected.”

Tracy Miah

A FRIEND FOR YOUR FINANCIAL JOURNEY...

THIS IS NOT A DIY SERVICE – WE TAKE FULL RESPONSIBILITY FOR SETTING UP YOUR PENSIONS AND SAVINGS. FOR LIFE.

No half measures. We don’t set it up then leave you all at sea. We manage your investments ongoing and hold ourselves accountable for steering you through your financial journey.

This phrase came from a client who said that’s exactly what we felt like to him, he said “you are like a friend or good neighbour who’s always got my best interests at heart.”

Whatever the reason you come to us we care. We really care. Like it’s our own money.

Tidying up bit and bobs of pensions and putting them neatly in a pot you have full control over.

Maybe transferring a final salary pension if your objectives are better met with your own pension.

Making sure you get all the tax efficiencies legally available to you to enhance your money.

Pointing the microscope on 3,000+ funds and finding the best ones to secure your retirement.

Get in touch
FEES
FEES
Find out more
OUR TEAM
OUR TEAM
Find out more
CLIENT JOURNEY
CLIENT JOURNEY
Find out more
ACCREDITATIONS
ACCREDITATIONS
Find out more