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Press release

BRITONS UNAWARE OF INFLATION RATE

16 September 2003

The new inflation rate (Retail Price Index) was announced today as 2.9%. A recent survey conducted by National Savings and Investments (NS&I) has found that the majority of British people have no idea what the rate is or thought it was either higher or lower than it has been in 2003. This highlights the lack of awareness the British public has about a key financial indicator which affects their everyday lives.

The survey asked people what the current rate of inflation was and a correct answer was deemed to be within 2.5% and 3.5% as the inflation figure has varied between these parameters in 2003 (see Notes to Editors). Two in every five (41%) said they have no idea what the level of inflation is.

• Only one in five (22%) correctly said it was between 2.5% and 3.5%.
• 23% thought it was below 2.5%
• 14% said it was over 3.5.% including 2% believing it was over 10%

Women and Men

Nearly twice as many women as men had no idea about the rate of inflation with 52% of women and 28% of men claiming that they did not know.

Age

The highest number of correct answers, one in three (36%), came from 55 to 64 year olds with the least, 3%, aged between 16 and 24. Seven out of ten (69%) 16 to 24 year olds had no idea that the rate of inflation was between 2.5% and 3.5%

Gill Cattanach, NS&I's Commercial Director, said:

"While the current level of inflation is stable, it is still vitally important that people are aware of what the rate is when it comes to making any financial decisions as it can seriously erode future spending power and the real value of money whether for their own personal finances or other business matters.

"The research findings show that knowing the correct rate of inflation is something that British people do not pay enough attention to."

ENDS

Notes to Editors:

1. The published rates of Inflation (RPI) for 2003 are:-

Month	Rate of Inflation (RPI)
January	2.9%
February	3.2%
March	3.1%
April	3.1%
May	3.0%
June	2.9%
July	3.1%
August	2.9%

1. The National Savings and Investments survey was conducted by Taylor Nelson Sofres via CATI between 8th - 10th August 2003. The sample size was 1,011 GB adults aged 16+.
2. NS&I is currently the only provider to offer a way of saving with a rate of return that is guaranteed to be above inflation and tax-free. NS&I offers three-year and five-year Index-linked Savings Certificates which give savers, who want to lock up their money up for this time, the opportunity to invest between £100 and £10,000 in each Issue.
3. National Savings and Investments is one of the largest savings organisations in the UK, offering a range of savings and investments products (to 30 million customers). All products offer 100% security because they are backed by HM Treasury.
4. Further information on NS&I, including press releases and product information, is available on the website at www.nsandi.com. For further information and photographs, contact the NS&I media team:

	Mark Brooks	020 7348 9301	mark.brooks@nsandi.com
	Jonathan Akerman	020 7348 9433	jonathan.akerman@nsandi.com
	Samantha Bennett:	020 7348 9654	sam.bennett@nsandi.com
	Wendy Franklin	020 7348 9449	wendy.franklin@nsandi.com
	Fax	020 7348 9755
	Out of hours	07778 966387

Media team
NS&I has a number of spokespeople available for interviews and our experienced radio team is available via our ISDN line: 020 7602 4522.

The numbers below are for media use only. Customers wishing to contact NS&I can find details here.

Gareth Headon		020 7348 9494
		gareth.headon@nsandi.com
Gill Stephens		020 7348 9449
		gill.stephens@nsandi.com
Iman Asante		020 7348 9301
		iman.asante@nsandi.com
Monica Del-Villar		020 7348 9654
		monica.del-villar@nsandi.com
ISDN for interviews		020 7602 4522
Out of hours		All numbers above diverted to staffed mobile phones

 

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