The Post Office's new Inflation Linked Bond pays an inflation+ return over five years.

Referring to the bond as the 'market-leading' product, director of savings and investments Richard Nowman said most savings accounts do not beat current inflation levels. The capital-protected deposit, provided by Bank of Ireland, locks in 1.5% gross per annum plus each April's annual Retail Price Index rate. At maturity, it repays capital plus the locked in returns.

Other UK providers have jumped on inflation as an underlying, including Jubilee Financial Products, Birmingham Midshires and Yorkshire Building Society, which also distributes through subsidiaries the Barnsley and Chelsea Building Societies.

However, recent articles in the financial press have suggested inflation-linked products may not make as much sense in 2016-17 when the current batch matures. Despite investors' fears, interest rates are likely to have risen and inflation fallen off in the meantime, say detractors.

Since November last year, only three providers globally have combined inflation with another underlying to add a potential boost to growth. Slovakia's ČSOB Asset Management launched Horizon CSOB Inflation Plus 2 in November. The 5.66-year product is linked to Eurozone HICP ex-Tobacco and the Eurostoxx50. Morgan Stanley launched 4Y EUR Eurozone Inflation Turbo Note in January, also linked to Eurozone HICP ex-Tobacco and Eurostoxx50. In the UK, Jubilee Financial Products' six-year Inflation Income Plan closes this week, with links to the RPI and the FTSE100.

Given that grain is considered a good inflation hedge, it is not surprising that grain-linked products are also on the increase. Several corn futures-linked notes have appeared recently in the US, for example, and in the UK Merchant capital and Jubilee Financial products have launched three products between them linked to a basket of soft commodities, including sugar, cotton, corn (Jubilee) and also soybeans (Merchant Capital).

Inflation Linked Bond is open now and closes 27 April.

These products are available now on the UK, Slovakia, Swiss and US databases.