Published: Fri, August 17, 2018
Money | By Arnold Ball

Retail inflation at 9-month low; rate hike seems unlikely

Retail inflation at 9-month low; rate hike seems unlikely

On a month-on-month basis, house prices were flat.

The latest inflation figures come just 24 hours after the ONS showed that unemployment in the United Kingdom has fallen to just 4%, a low not witnessed since the early 1970s.

The Home Price Index rose 0.9% for the period May-June 2018 in comparison with April-May 2018, the Central Bureau of Statistics reported today, wiping out the falls of the past year.

In July 2018, food inflation on a year-on-year basis was highest in Abuja (15.85%), Bayelsa (15.75%) and Imo (15.46%), while Plateau (9.40%), Bauchi (10.44%) and Kano (10.50%) recorded the slowest rise in food inflation. Prices of clothing and footwear fell 6.7% in July.

The strongest performer was the West Midlands, which experienced house price growth of 5.8%.

The index includes all residential properties purchased for market value in the United Kingdom but the ONS warned that, as sales only appear in the index once the purchases have been registered, there can be a delay before transactions feed into the index.

In June, the retail inflation stood at a five-month high of 5 per cent.

While London estate agent and former RICS residential chairman Jeremy Leaf comments: "House price growth outside of London is being supported by a continuing shortage of stock whereas the capital and the southeast can't hide behind this excuse any longer".

Paul Manafort declines to testify as defense rests
Ellis III whether he wished to testify in his defense, Manafort responded: "No, sir". "You don't really care about Mr. Andres took jurors through a methodical rundown of the 18 charges, and the documentary evidence supporting each.

Average UK house prices, January 2005 to June 2018.

'The big question is what happens to prices when the property market's own version of Quantitative Easing is taken away?'

Its previous low was in October 2017 at 3.58 percent.

The report indicated that the percentage change in the average composite CPI for the 12-month period ending July 2018 over the average of the CPI for the previous 12-month period was 13.95 per cent, showing 0.42 per cent point from 14.37 per cent recorded in June 2018.

By property type, semi-detached houses showed the biggest increase, rising by 4.4 per cent in the year to June 2018 to £216,000.

House prices in London have fallen at their fastest rate since 2009 amid growing signs Britain's booming property market is finally cooling down.

There has been a rise in time taken to complete a property sale from 16 weeks past year to 18 weeks on average.

Jonathan Samuels, CEO of Octane Capital, said: "That the annual growth rate in London is at its lowest level since September 2009, when the United Kingdom economy was reeling from the Global Financial Crisis, underlines the weakness of the capital's property market". We do not expect prices to turn negative as long as they are being propped up by low unemployment, low mortgage interest rates and limited supply'.

Like this: