The FTSE All Share index, representing the performance of all 627 eligible companies listed on the London Stock Exchange has finished the week at 3064.33, an increase of 16.34 points (0.54%) on the day but 51.04 points (1.64%) lower than its 3,115.37 opening value at the start of the week.

So far this year the FTSE All Share index, which accounts for approximately 98% of the UK’s market capitalisation, has had a 1.48 point (0.05%) gain from its’ opening price of 3062.85 at the start of trading in 2011.

The FTSE All-Share Index is considered to be the best performance measure of the overall London equity market. Over the last 52 weeks the FTSE All Share index has fluctuated between 2,479 and 3,155.

CPI annual inflation – the Government’s target measure – was 3.7% for the 12 months to December 2010. This represents an increase of 0.4% from its value in November 2010.  In the year to December 2010, RPI annual inflation was 4.8%, up 0.1% from its November 2010 level.

With the Bank of England (BoE) base rate currently set at 0.5% (where it’s been since a reduction from 1.00% on 5^th March 2009) returns on cash deposits are getting steadily eroded by the ravages of inflation.  How long will the BoE be able to hold off a rate rise to slow down inflation is anyone’s guess. 

Only time will tell whether a change in UK interests rates can actually put the brakes on global price increases