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17/04/2007
Inflation rises to 3.1%
The Bank of England has been forced to write a letter of explanation to Chancellor Gordon Brown after inflation rose to 3.1% in March.
The government's target for inflation was targeted at 2% when the Chancellor placed the Bank of England in charge of deciding the interest rate in 1997.
Anything between 1% and 3% is acceptable, but anything over or under those figures requires the Bank to write a letter of explanation.
The rise in CPI inflation was attributed to an increase in petrol and furniture prices.
RPI inflation, which includes mortgage payments, also rose to 4.8% last month from 4.6% in February.
The rise is expected to lead to a further hike in UK interest rates. Interest rates have increased three times since last August, although rates were kept on hold at 5.25% earlier this month.
Analysts are now predicting that interest rates will rise to 5.5% in May.
Liberal Democrat Treasury spokesperson Vince Cable said: "This news gives lie to the claim that the government has permanently achieved a nirvana of steady growth without inflation.
"This high inflation is likely to cause further interest rate rises which will cause misery for thousands of people in severe debt who have borrowed up to the hilt to secure a mortgage."
Conservative Shadow Chancellor George Osborne said: "Whether it is the destruction of the pensions system or the broader performance of the economy, Gordon Brown's reputation for economic competence is unravelling before our eyes."
The rise in inflation also resulted in the pound briefly passing through the $2 mark on currency markets.
The news of the inflation rise came as Mr Brown faces a vote of no confidence in the Commons over his decision to scrap tax relief on pensions in his first Budget, a decision which has been blamed for the decline in occupational pension funds.
The Conservatives have tabled the no-confidence motion and it has been widely seen as an opportunity to apply pressure on Mr Brown who is the favourite to succeed Tony Blair as prime minister when he steps down later this year.
However, Mr Brown is expected to survive the vote, due to Labour's majority in the Commons.
(KMcA/JM)
The government's target for inflation was targeted at 2% when the Chancellor placed the Bank of England in charge of deciding the interest rate in 1997.
Anything between 1% and 3% is acceptable, but anything over or under those figures requires the Bank to write a letter of explanation.
The rise in CPI inflation was attributed to an increase in petrol and furniture prices.
RPI inflation, which includes mortgage payments, also rose to 4.8% last month from 4.6% in February.
The rise is expected to lead to a further hike in UK interest rates. Interest rates have increased three times since last August, although rates were kept on hold at 5.25% earlier this month.
Analysts are now predicting that interest rates will rise to 5.5% in May.
Liberal Democrat Treasury spokesperson Vince Cable said: "This news gives lie to the claim that the government has permanently achieved a nirvana of steady growth without inflation.
"This high inflation is likely to cause further interest rate rises which will cause misery for thousands of people in severe debt who have borrowed up to the hilt to secure a mortgage."
Conservative Shadow Chancellor George Osborne said: "Whether it is the destruction of the pensions system or the broader performance of the economy, Gordon Brown's reputation for economic competence is unravelling before our eyes."
The rise in inflation also resulted in the pound briefly passing through the $2 mark on currency markets.
The news of the inflation rise came as Mr Brown faces a vote of no confidence in the Commons over his decision to scrap tax relief on pensions in his first Budget, a decision which has been blamed for the decline in occupational pension funds.
The Conservatives have tabled the no-confidence motion and it has been widely seen as an opportunity to apply pressure on Mr Brown who is the favourite to succeed Tony Blair as prime minister when he steps down later this year.
However, Mr Brown is expected to survive the vote, due to Labour's majority in the Commons.
(KMcA/JM)
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05 April 2007
Interest rates kept on hold
The Bank of England has voted to keep interest rates at 5.25% for the second month in a row. The decision is good news for borrowers, as there had been fears that interest rates would be increased to 5.5% this month. If this had happened, homeowners with an average £100,000 mortgage would have faced a rise of £16 per month on their repayments.
Interest rates kept on hold
The Bank of England has voted to keep interest rates at 5.25% for the second month in a row. The decision is good news for borrowers, as there had been fears that interest rates would be increased to 5.5% this month. If this had happened, homeowners with an average £100,000 mortgage would have faced a rise of £16 per month on their repayments.
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.
10 May 2007
Interest rates rise to 5.5%
The Bank of England has announced that interest rates will rise from 5.25% to 5.5%. The rise is the fourth since last August, bringing the cost of borrowing to its highest level since 2001. The rise has been expected by analysts in order to try and keep inflation down.
Interest rates rise to 5.5%
The Bank of England has announced that interest rates will rise from 5.25% to 5.5%. The rise is the fourth since last August, bringing the cost of borrowing to its highest level since 2001. The rise has been expected by analysts in order to try and keep inflation down.
12 September 2005
House price rise slowdown continues
Annual house price inflation in July was 4%, down from 5% in June according to figures released today by the Deputy Prime Minister's office. This drop in the growth of house prices pushed the annual house price inflation in London down to 0.9% in July 2005, a fall from the from 1.7% figure in June 2005.
House price rise slowdown continues
Annual house price inflation in July was 4%, down from 5% in June according to figures released today by the Deputy Prime Minister's office. This drop in the growth of house prices pushed the annual house price inflation in London down to 0.9% in July 2005, a fall from the from 1.7% figure in June 2005.
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.
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