Business, Economics, Stock markets, Bank of England, House prices Business | The Guardian
Rolling coverage of the latest economic and financial newsWhile Dave Ramsden’s speaking in South Africa, UK lender Nationwide was reporting that house price growth “remains solid in February”.Nationwide’s latest house price report shows that prices rose by 0.4% this month, up from the 0.1% rise reported in January, and the sixth monthly rise in a row.“Housing market activity has also remained resilient in recent months, despite ongoing affordability challenges. Indeed, the second half of 2024 saw a noticeable pick up in total housing transactions, which were up 14% compared with the same period in 2023.However, taking 2024 as a whole, transactions were still modestly (6%) lower than the levels prevailing before the pandemic struck in 2019.Because of the evidence of recent months I no longer think that risks to hitting the 2% inflation target sustainably in the medium term are to the downside.Instead, I think they are two sided, reflecting the potential for more inflationary as well as disinflationary scenarios. I do, though, think the core disinflationary process remains intact.UK inflation is expected to rise in the short term to around 3.7% and is then forecast to fall back to close to the 2% target in the second half of the forecast period. Continue reading…
Rolling coverage of the latest economic and financial news
While Dave Ramsden’s speaking in South Africa, UK lender Nationwide was reporting that house price growth “remains solid in February”.
Nationwide’s latest house price report shows that prices rose by 0.4% this month, up from the 0.1% rise reported in January, and the sixth monthly rise in a row.
“Housing market activity has also remained resilient in recent months, despite ongoing affordability challenges. Indeed, the second half of 2024 saw a noticeable pick up in total housing transactions, which were up 14% compared with the same period in 2023.
However, taking 2024 as a whole, transactions were still modestly (6%) lower than the levels prevailing before the pandemic struck in 2019.
Because of the evidence of recent months I no longer think that risks to hitting the 2% inflation target sustainably in the medium term are to the downside.
Instead, I think they are two sided, reflecting the potential for more inflationary as well as disinflationary scenarios. I do, though, think the core disinflationary process remains intact.
UK inflation is expected to rise in the short term to around 3.7% and is then forecast to fall back to close to the 2% target in the second half of the forecast period.
