Falling gilt values 'greatest threat' to investors

The surge in the Consumer Price Index to 2.9% in December marked its steepest spike since records began, heightening concerns rising inflation will threaten the country's economic recovery and bring misery to savers. Speculation the next government could raise VAT to 20% and hike interest rates in an effort to reduce the country's huge budget deficit has further stoked concerns. But such fears have been cast aside by Bamford, who thinks savers and investors have more pressing problems. "I do not think inflation will be a huge issue - there is so much spare capacity in the economy...