Inflation

House prices climbed again in January in comparison to the end of last year, but the average price of a UK property continued to fall a fraction, says Nationwide.

A poll of around 1,000 adults earlier this month has found most are ignorant of the effects of retail price index inflation or tax on savings, according to National Savings & Investments.

Buying a house in Britain cost less in November 2004 than in October, according to the latest statistics from the Office of the Deputy Prime Minister, as the average property value fell to 180,226 in November.

October saw house prices fall by 1.1% on average as the market continued to move towards a more historical growth trend, according to the latest figures from Halifax.

Latest National Statistics figures suggest consumer price inflation fell to a rate of 1.1% in September from 1.3% in August, implying less pressure on the Bank of England to increase interest rates.

House prices up more than 50% in markets such as the UK since 1997 have significantly increased the risk of economically damaging price corrections, the International Monetary Fund warns.

Continued strong rates of house price inflation in England's regions and the home countries has offset falls in house price inflation in the nation's capital, the Office of the Deputy Prime Minister says.

Rising interest rates are causing house price falls and slower consumption nationwide new economic data suggest.

Official unemployment claimant numbers dropped again in the past month taking the rate to the lowest since the mid-1970s and piling pressure on the Bank of England to maintain a tightening of monetary policy in order to head off future inflation.

UK inflation continues to pick up steam with latest figures from the Office for National Statistics suggesting CPI is running at an annualised rate of 1.6%, and RPI running at 3%.