Tuesday, July 14, 2009
Inflation below target - house prices flat
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

There was just a danger that the Bank of England's decision to pause with its quantitative easing programme might have been prompted by a bad inflation reading but that was not the case. Consumer price inflation dropped from 2.2% to 1.8%, the first time it has been below target since September 2007, and it will drop further. Retail price inflation was negative by 1.6%, from 1.1%. More details here.

Meanwhile, the official measure of house prices from the DCLG slipped by just 0.1% in May, consistent with the stabilisation in prices on other measures, including the overnight RICS survey.