‘Surprise at rise in UK inflation’ scream the headlines.
We’re not surprised;
The Bank of England’s programme of Quantitative Easing, or money printing, as it used to be called, has placed huge amounts of liquidity into the economy. History tells us that intervention in the money supply on this scale only ever produces one result; inflation.
Economists have got a bit blasé about inflation in recent years but eventually all that money chasing the same amount of goods and services will manifest itself as rising prices. Our customers can take some comfort from the fact that returns on an investment in PV are linked to rise with RPI, providing inflation proofing for what is already an attractive asset class.