Cost of living squeeze eases as UK inflation falls to 2.4%. Weakening price pressures take pressure off the BoE to consider raising interest rates any time soon. So with Brexit approaching a crescendo, the Bank can sit tight, even though wages are rising.
The Office for National Statistics reports that average house price growth dropped to 3.2% per year in August, down from 3.4% in July. That’s the slowest increase since August 2013. The ONS blamed a “sustained slowdown” in the south and east of England, with prices dropping by 0.2% per year in London. The average UK house now costs £233,000, although London prices are still much pricier, at an average of £486,000.
British retailers are gritting their teeth at the prospect of even higher business rates. They are due to rise next year in line with today’s inflation reading, meaning an extra £180m total bill according to the British Retail Consortium. Helen Dickinson, chief executive of the BRC, argues the current system is simply unfair, as shops are already struggling to cope with web-based rivals like Amazon.
