A scandal wrapped in a fraud and shrouded in a puzzle

Inflation in the United Kingdom is running at 5%. This is good news for some borrowers whose mortgage rate is fixed below 5.2% but bad news for savers and most others. If you have savings (and most of us do directly in the bank or indirectly through pension funds or life insurance policies, you will be lucky to earn 3% interest on those savings, and you can only get this rate in a ISA or in a pension fund. If your savings earn 3% but over a year lose 5.2% in spending power your savings are depreciating at the rate of 2.2% a year.