In the week when the Government’s target figure for inflation increased 0.4% to 4.4% the FTSE All Share index has rebounded significantly. The volatility seen on the markets following the uncertainty of Japan’s nuclear problems and trouble in North Africa has subsided.

The FTSE All Share index, representing the performance of all eligible companies listed on the London Stock Exchange has finished the week at 3065.83, an increase of 10.06 points on the day and 92.19 points higher than its 2,973.64 opening value at the start of trading on Monday.  That’s an increase 3.10% – almost as much as inflation.

So far this year the FTSE All Share index, which accounts for approximately 98% of the UK’s market capitalisation, has risen slightly, up 6.56 points from its’ opening price of 3062.85 at the start of trading on 4^th January 2011.

In fact over the last 52 weeks the FTSE All-Share Index, considered to be the best performance measure of the overall London equity market, has recorded gains of 4.67%. With interest rates at record lows and inflation currently running at 4.4% cash is looking like delivering returns significantly below inflation.