As consumers become increasingly concerned by predictions of inflation rises, Leeds Building Society has launched an individual savings account (ISA) guaranteed to beat it.

General manager of marketing and customer services Karen Wint said the Inflation Buster ISA comes in response to increasing energy and food costs.

She observed that the retail price index (RPI), the official measure of inflation, had risen by 4.58 per cent over the last year.

The new ISA is guaranteed to pay 2.25 per cent above the RPI, meaning savers would earn an interest rate of 6.83 per cent.

Its launch is accompanied by that of the Inflation Buster Bond, aimed at customers with more capital and offering the same rate as the ISA.

Ms Wint stated: "With the prospect of rising inflation, we expect demand for these latest Inflation Buster ISA and Bonds to be very strong."

In related news, online bank cahoot has found that the average interest rate on instant access savings accounts has risen by 0.6 per cent over the last year.

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