Inflation proving stickier than hoped for - but what will it mean for investments?

The Treasury has said the road to achieving the Bank of England's 2% inflation target will be "bumpy” after an unexpected jump to 3% in the latest numbers revealed this week, which could have big implications for the UK economy and business.

This could cause concern for insurance investors - especially those in life - because they need fixed income securities that pay them enough to pay liabilities, and in particular keep up with any increases in the value of their liabilities, as some longer-term insurance policies are linked to inflation.

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