Maybe UK investors have become used to low single-digit inflation which can still erode wealth – without compensating forces. A survey shows that worries about corrections to tech stocks are possibly more of a concern than prices.

UK consumer price inflation’s annual rate (CPI) came in at 4.1 per cent in September, as reported in October. On £100 ($130) of money held today, it would be eroded to £81.83 in just five years’ time if the rate does not change. 

In other words, even inflation that is not in the “hyper” levels seen in parts of the world at times (1970s UK, parts of South America in recent decades, etc) can cause a lot of damage. As a result, investors must figure out the best ways of mitigating the "hit." That has often meant holding property and equities. It may also explain the popularity at various times of gold. Despite recent pullbacks, gold is up substantially this year at around $4,000 per ounce. So much for gold being any sort of “barbarous relic.”

But it appears that at least for the moment, investors aren't fretting about inflation as much as they might. Earlier this week, Titan Square Mile, an investment consulting and research business, said inflation was not as big a concern for advisors researching options for clients in the third quarter as it was before. The findings came from the firm’s quarterly market intelligence report. 

Inflation protection accounted for fewer than one per cent of searches conducted by users of the Titan Square Mile Academy of Funds in the third quarter, down from 5.6 per cent in Q2. 

Interest in capital accumulation and income strategies remained broadly level at 42.9 per cent and 35.7 per cent respectively (42.6 per cent and 37.0 per cent in Q2). 

However, research into funds with the potential of preserving capital saw the largest shift in advisor viewing patterns. They accounted for over one in five searches (21.4 per cent) in Q3, a rise of 6.6 percentage points on the previous quarter, suggesting that advisors are seeking to protect client portfolios from a potential market correction.

This data shows how the “revealed preferences” of advisors and clients speak louder in some ways perhaps than what people say to pollsters. These are actual decisions, not just comments. The report from Titan Square Mile draws from advisors using the Academy of Funds, a depository of insight and opinion on all 399 active, passive and risk targeted funds and investment trusts rated by the company's team of analysts.

What to make of this apparent sang-froid about inflation? 

John Lester, senior business development director, Titan Wealth, reckons that caution about a selloff in equities if the AI investment story turns sour may be more of a factor on people’s minds.

“The IMF has warned that the UK faces the highest levels of inflation among its G7 peer group over the remainder of 2025 and into the new year. The fact that research into inflation protection as an investment outcome in Q3 was negligible while capital preservation registered a marked increase suggests a shift towards greater caution as alarm bells continue to ring over a potential market correction driven by a selloff in AI related companies,” he said. 

Advisors appear to be sanguine. All things considered, the findings suggest diversification remains key, he added.

That’s unquestionably true. Even so, it is perhaps a bit surprising that UK investors and others exposed to the country aren’t more concerned about inflation, in terms of their actions. Of course, one set of data points does not give a conclusive picture; more information may provide greater clarity on how people try to protect themselves against the rot of inflation. We are not in the 1970s yet, and it possible that in a resigned kind of way, investors see such price rises as a “new normal.”