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15/11/2011
Inflation At 5% But Expected To Drop 'Sharply'
This month's official inflation figures are still more than double the 'target rate' of 2%, although it is expected to drop "sharply", according to the Bank of England.
The Consumer Prices Index (CPI) in the UK fell slightly to 5% during October, down from a rate of 5.2% the month before.
Despite the fall, the government said it recognised that inflation remained high saying it was "difficult times for households" as prices continued to be affected by conditions in the global oil and gas markets, said a Treasury spokesperson.
However, in a letter the Chancellor on Monday, Mervyn King, head of the Bank of England, said the current high level of inflation was because of the high standard rate of VAT introduced by the Government earlier this year, along with previous steep increases in import and energy prices, including recent domestic utility price rises.
"In the absence of those temporary factors, it is likely that inflation would have been below the 2% target," Mr King Claimed.
In the letter, Mr King added that inflation would fall back sharply in the next six months or so, and continue falling thereafter to around target by the end of next year.
"While we can be confident about the direction of change of inflation over the coming months, we remain uncertain about the precise pace and extent of the drop in inflation. It could fall back more slowly if companies attempt to restore profit margins by raising their prices, but it is also possible that inflation could fall back more sharply given the existing margin of spare capacity in the economy, the substantial risks around the global economic recovery and the implications of a further slowdown in the world economy for the United Kingdom."
According to the official figures, falls in the price of food, air transport and fuel helped to slice off .2% of inflation in the last month.
Meanwhile, MPs are set to debate a motion later, which urges the government to limit increases in the price of petrol. The government plans to increase fuel duty by 3p a litre in January, but this is likely to reverse the fall in the inflation rate.
(DW)
The Consumer Prices Index (CPI) in the UK fell slightly to 5% during October, down from a rate of 5.2% the month before.
Despite the fall, the government said it recognised that inflation remained high saying it was "difficult times for households" as prices continued to be affected by conditions in the global oil and gas markets, said a Treasury spokesperson.
However, in a letter the Chancellor on Monday, Mervyn King, head of the Bank of England, said the current high level of inflation was because of the high standard rate of VAT introduced by the Government earlier this year, along with previous steep increases in import and energy prices, including recent domestic utility price rises.
"In the absence of those temporary factors, it is likely that inflation would have been below the 2% target," Mr King Claimed.
In the letter, Mr King added that inflation would fall back sharply in the next six months or so, and continue falling thereafter to around target by the end of next year.
"While we can be confident about the direction of change of inflation over the coming months, we remain uncertain about the precise pace and extent of the drop in inflation. It could fall back more slowly if companies attempt to restore profit margins by raising their prices, but it is also possible that inflation could fall back more sharply given the existing margin of spare capacity in the economy, the substantial risks around the global economic recovery and the implications of a further slowdown in the world economy for the United Kingdom."
According to the official figures, falls in the price of food, air transport and fuel helped to slice off .2% of inflation in the last month.
Meanwhile, MPs are set to debate a motion later, which urges the government to limit increases in the price of petrol. The government plans to increase fuel duty by 3p a litre in January, but this is likely to reverse the fall in the inflation rate.
(DW)
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12 April 2005
UK house prices fall, report shows
UK house prices fell by 0.5% between January and February, figures from the Office of the Deputy Prime Minister (ODPM) have shown. The drop in prices, which saw the average house price in the UK in February fall to £179,491 from £180,465 in January, is smaller than the 1% fall reported in the same period last year.
UK house prices fall, report shows
UK house prices fell by 0.5% between January and February, figures from the Office of the Deputy Prime Minister (ODPM) have shown. The drop in prices, which saw the average house price in the UK in February fall to £179,491 from £180,465 in January, is smaller than the 1% fall reported in the same period last year.
14 February 2005
Drop in house prices reported over Christmas period
The latest government figures have shown that overall UK house prices fell in December last year by 0.7%, compared to a 2% rise in the same period last year. Figures published by the Office of the Deputy Prime Minister, showed that UK annual house price inflation in December 2004 was 10.7%, a drop from 13.7% in November.
Drop in house prices reported over Christmas period
The latest government figures have shown that overall UK house prices fell in December last year by 0.7%, compared to a 2% rise in the same period last year. Figures published by the Office of the Deputy Prime Minister, showed that UK annual house price inflation in December 2004 was 10.7%, a drop from 13.7% in November.
13 June 2005
House price inflation declines
Annual house price inflation dropped to 6.9% in April, a sharp fall from 12.6% in March, according to the latest figures from the Office of the Deputy Prime Minister (ODPM). The ODPM also reported a fall in mix-adjusted prices of 0.8% between March and April, which contrasted sharply with the 4.5% rise during the same period in 2004.
House price inflation declines
Annual house price inflation dropped to 6.9% in April, a sharp fall from 12.6% in March, according to the latest figures from the Office of the Deputy Prime Minister (ODPM). The ODPM also reported a fall in mix-adjusted prices of 0.8% between March and April, which contrasted sharply with the 4.5% rise during the same period in 2004.
19 June 2012
Inflation Rates Drop To Two-And-A-Year Low
The rate of inflation in the UK fell to a two-and-a-half year low last month, as a result of slowing fuel and food prices. The Consumer Prices Index (CPI) measure fell to 2.8% in May from 3% in April, the Office for National Statistics (ONS) said. The Retail Prices Index (RPI) measure fell to 3.1% from 3.5% in March.
Inflation Rates Drop To Two-And-A-Year Low
The rate of inflation in the UK fell to a two-and-a-half year low last month, as a result of slowing fuel and food prices. The Consumer Prices Index (CPI) measure fell to 2.8% in May from 3% in April, the Office for National Statistics (ONS) said. The Retail Prices Index (RPI) measure fell to 3.1% from 3.5% in March.
13 August 2007
House Prices Rise By 12% In June
UK annual house price inflation in June 2007 was 12.1%, up from 10.8% in May 2007. Annual house price inflation in London was 17.5% in June, up from 14.3% in May. The UK annual house price inflation rate for the 3 months to June was 11.3% and 15.1% in London. The UK house price inflation rate rose from 10.8% in May 2007 to 12.1% in June 2007.
House Prices Rise By 12% In June
UK annual house price inflation in June 2007 was 12.1%, up from 10.8% in May 2007. Annual house price inflation in London was 17.5% in June, up from 14.3% in May. The UK annual house price inflation rate for the 3 months to June was 11.3% and 15.1% in London. The UK house price inflation rate rose from 10.8% in May 2007 to 12.1% in June 2007.
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