Gold still looks good – but miners look even better

Have you ever sat down and worked out your personal inflation rate? I have. The latest official statistics suggest that the consumer price index (CPI – the Bank of England’s official ‘target’ measure) rose at an annual rate of 2.8% in May. But I reckon my cost of living has risen by a lot more. Having looked at all my costs – and I mean all, from the 5.8% rise in the price of a kilogramme of tomatoes, to the 2.4% rise in the price of a loaf, to the 6% rise in the cost of filling up my car, to the whopping 14% rise in the cost of a bag of potatoes – I reckon my annual inflation rate is sitting at more than 6% – 6.3% to be exact. The chances are, unless you live with your parents and spend most of your income on new electronic goods (which are about the only things that consistently fall in price these days), your own cost of living is probably rising at a similar rate.