The FTSE All Share index, representing the performance of all of the eligible companies listed on the London Stock Exchange has finished the week at 2,827.83, an increase of 51.6 points on the day and 6.79 points higher than its 2,821.04 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 gone down 235.02 points from its’ opening price of 3062.85 at the start of trading on 4^th January 2011.

CPI annual inflation – the Government’s target measure – was 5.2% for the 12 months to September 2011. RPI annual inflation over the same period was 5.6%.

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.