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16/09/2008
UK Inflation To Peak At 5% "Soon"
High energy and food bills have led to the UK's annual rate of inflation hitting 4.7%, prompting the Bank of England (BoE) Governor to write to the Chancellor.
Mervyn King has told the Government that inflation will peak at around 5% "soon", and that policy makers are determined to prevent higher prices from pushing up wages.
Chancellor Alistair Darling warned that inflationary pay demands would serve to add to the ever increasing prices, stating: "In both the private and public sector pay rises must be consistent with the inflation target.
"Otherwise every penny in pay rises will be swallowed up by higher prices and we will all remember the job losses that followed in the past once inflation takes a grip."
The BoE Governor has written an open letter to the Chancellor of the Exchequer Alistair Darling to explain the Consumer Prices Index (CPI) 0.3% increase of 4.4% in July to 4.7% in August.
Mr King is required to pen a letter to the Chancellor every three months if CPI remains more than 1% above the Bank's 2% target.
He must also detail what measures are being taken to bring inflation down.
In the letter, the Bank of England Governor blamed "sharp, largely anticipated" food and energy price increases for pushing inflation well above the government's target.
He also said the Bank has "become firmer in its belief" that a period of muted growth is necessary to return inflation to target.
Mr Darling responded to the letter, saying: "Clearly this is a challenging time for the UK economy as a result of global factors and individuals and families are feeling the effects.
"In recent weeks the Government has introduced a number of policy measures on housing and energy to support the most vulnerable and those hit hardest."
Massive rises in energy tariffs also sent the CPI up by 0.3%.
At the end of July British Gas announced a 35% rise in gas prices, while it increased electricity tariffs by 9%. As a result, rivals E.ON, EDF Energy and Scottish & Southern Energy boosted their prices also.
(JM)
Mervyn King has told the Government that inflation will peak at around 5% "soon", and that policy makers are determined to prevent higher prices from pushing up wages.
Chancellor Alistair Darling warned that inflationary pay demands would serve to add to the ever increasing prices, stating: "In both the private and public sector pay rises must be consistent with the inflation target.
"Otherwise every penny in pay rises will be swallowed up by higher prices and we will all remember the job losses that followed in the past once inflation takes a grip."
The BoE Governor has written an open letter to the Chancellor of the Exchequer Alistair Darling to explain the Consumer Prices Index (CPI) 0.3% increase of 4.4% in July to 4.7% in August.
Mr King is required to pen a letter to the Chancellor every three months if CPI remains more than 1% above the Bank's 2% target.
He must also detail what measures are being taken to bring inflation down.
In the letter, the Bank of England Governor blamed "sharp, largely anticipated" food and energy price increases for pushing inflation well above the government's target.
He also said the Bank has "become firmer in its belief" that a period of muted growth is necessary to return inflation to target.
Mr Darling responded to the letter, saying: "Clearly this is a challenging time for the UK economy as a result of global factors and individuals and families are feeling the effects.
"In recent weeks the Government has introduced a number of policy measures on housing and energy to support the most vulnerable and those hit hardest."
Massive rises in energy tariffs also sent the CPI up by 0.3%.
At the end of July British Gas announced a 35% rise in gas prices, while it increased electricity tariffs by 9%. As a result, rivals E.ON, EDF Energy and Scottish & Southern Energy boosted their prices also.
(JM)
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13 August 2007
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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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House price inflation drops
Annual house price inflation dropped again in October, according to the latest figures from the Office of the Deputy Prime Minister. House price inflation was 2.2% in October, a fall from September’s figure of 3.3%. The ODPM reported that the average house price in the UK was £186,103 in October, compared with £186,755 in September.
House price inflation drops
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House price inflation declines
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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.
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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.
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