So UK inflation drops to 1.5%, what’s the big deal? Well, this continual 6 month drop below the Bank of England’s 2% target means the general cost of living (food and drink) is going down leaving surplus cash to spend on other things…
With that said prices are still increasing quicker than average earning.
More of an interest to us is the fact that average cost of a UK home rose by almost 10% between April 2013 and April of this year reaching a new record high of £260,000. What’s driving this housing market? Typically this increase is predominantly down South, more specifically London where cash buyers fueling property market driving up the national average. If you were to look at the specific areas of the country there is evidence of decline in house prices, but if you were to look at London alone house prices have increased significantly more than 10% over the past year…
This current level of inflation will only encourage the bank of England to leave interests rates at the all time low.
We’d be interested in knowing your thoughts below?