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Drive focuses on the effects of inflation

National Savings & Investments is running a campaign focusing on the effects of inflation to raise consumer awareness of index-linked savings certificates.

The campaign has been inspired by research findings which found that only one in four savers takes inflation into account when investing.

The drive will see NS&I’s index-linked certificates rebranded as inflation-beating savings in a bid to make the aims of its product suite clear for retail investors. This will include new consumer lit- erature and a TV advertising campaign fronted by entre- preneur Sir Alan Sugar.

The NS&I research, which surveyed 1,010 adults, found 67 per cent have no idea what the current rate of inflation is – presently 2.9 per cent.

Awareness of the impact of inflation had appeared to be rising after NS&I research found that the number of people ignoring inflation fell from 74 per cent in 2003 to 62 per cent in January 2005. but this figure rose back to 74 per cent in August.

Further indicators of consumer ignorance of the effect of inflation on savings inc_ ludes 10 per cent believing it only affects the well off.

Marketing director Karen Jones says: “Even though we are experiencing a period of relatively low inflation, people who invest their money for more than a few years in an account that does not protect against inflation could see the value of their money diminish as inflation takes its toll.”

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