The Bank of England is watching UK inflation carefully, and the latest official figures show that inflation slowed in April by less than expected to 8.7%.
Britain’s ‘core inflation’ - a measure which doesn’t include volatile components such as energy and food - is the highest of the G7 countries at 6.8% and is going in the wrong direction.
Nationwide building society has warned that rises in mortgage interest rates - closely tied to increases in the Bank of England’s rate that has been raised to try and control inflation - could hit the housing market.
So why is inflation in the UK so stubborn compared to similar countries? Newsnight’s Economics Editor Ben Chu reports.
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Scoop.it!
The latest raft of economic data implies that the economy's slowing: service sector and manufacturing output have both fallen as the cost of living crisis bites. That said, retail sales were up slightly, so it's difficult to read the runes, but overall sentiment seems to be negative.