Inflation

Slowing retail sales are the topic of two of this morning's papers with the Scotsman reporting an unexpected fall in sales in March, sparking speculation the feared consumer slowdown may now be taking hold.

INFLATION COCERNS dominate several of this morning's papers with many reporting that an increase in interest rates in May seems ever more likely.

The Liberal Democrats have launched a ten-point action plan to tackle household and consumer debt which, among other ideas, calls on the FSA to investigate mortgage payment protection insurance.

UK inflation is likely to rise in the medium to long term, suggests Legal & General, because the cost of global purchasing is likely to rise eventually, along with higher wage demands.

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.