Increase wont come. Lets not forget that yesterday we heard that average uk wages were rising at their fastest pace in 20 years. Joining me now is Neil Shearing group Chief Economist at capital economics. Thanks very much for being with us today. Clearly it is pretty good news, but is it happening fast enough, oras news, but is it happening fast enough, or as fast as we had hoped . The fall in the Headline Rate of inflation, as you say, thats going to be welcomed by the Bank Of England. It takes a bit of pressure off them. But when you start to dig into the details of this report, i think perhaps there is still some uncomfortable reading there for the policymakers of the bank. As you mentioned, a lot of the fall in the Headline Rate, that is driven by what has happened to food and Energy Prices and that is out of the banks control. Interest rates dont tend to affect the price of our energy or food. Those are set in global markets. What they do affect his conditions in the real economy,
10 15pm on the 13th Of August on sunday, those two men were standing outside the nightclub, in south london, they were approached police say by a man who attacked them with a knife before running away. Both men are in their 20s or 30s, they were taken to hospital for treatment and have since been discharged, there has been no officers, officers are following up leads, they are crucial in the Ongoing Investigation what they described as a homophobic attack of the two men. We will of course have more on that story as we get it but now lets go to tie and write for the business news. Lets start with china. Weve had some worrying data this week fuelling fears about the health today, Property Prices fell for the first time this year due to flagging demand house prices fell by 0. 1 injuly, compared with the same month last year. Going into reverse again for the First Time Since china began to emerge from its covid lockdown. 0n wednesday, on wednesday, Retail Sales Growth slowed to 2. 5 , a si
Rates have gone up again, for the 14th time in a row. The Bank Of England has put up its main rate from 5 to 5. 25 . That will mean higher mortgages for some people, but its also good news for savers. The Bank Of England is using Interest Rate rises to fight inflation, which has slowed recently, but which is still nearly 8 . Our economics correspondent andy verity reports the father of two, peter, keeping up the payments for his familys mortgages looking like anything but childs play. They bought their home under the governments help to buy scheme, but since then Interest Rates have risen 1a times. When his fixed rate deal expires early next year, the payments willjump. Somehow we are supposed to spend less and find an extra £750 per month to pay for that. For many families it is a terrifying situation, but if you have a young family like ourselves, who have been swayed into the Housing Market by government who has advertised help to buy as an affordable scheme, right, when things bec
Vaping and smoking, but the Office For Budget Responsibility warns the government could find it hard to balance the books. Heres our business correspondent, emma simpson. Did you catch any ofjeremy s budget . It was a chance to turn around the fortunes of the Conservative Party. But was it enough . I think its good that the workers are going to get money back in their pockets. But then if you think about the Cost Of Living and how everything is going up, then maybe they could have given a little bit more back. Anything that cuts taxes, i wish he would have done something a bit more for savers, were in a position where were living off savings. I think theyre trying to do it in light of a General Election and probably not really thinking about what the benefit to the country is. The centrepiece of this budget was a £2 billion cut was a 2p in the pound cut to National Insurance, a tax paid by workers. So who are the winners and losers if you include all the changes to tax and thresholds
Quite simply they are doing this because of inflation and the rate of Price Increases and the International Comparisons are clear, although inflation is falling, in the uk it is not falling by as much or down to as low a level as it is elsewhere in europe in the us, and the us, and the bank has been talking up food prices and the amount we pay for services and the speed that wholesale, lower wholesale prices are being passed through the supply chain to us. The bank talked about crystallising risks, essentially the fear that when it comes to private sector wage growth, rings might be becoming embedded so they argued they needed to continue acting despite the impact it will have on households and businesses and we know the impact it will have on uk households and Mortgage Holders and also those ran singh. Also a warning from the bank also those renting. They said the rates will be high for a while, they are expecting inflation to meet the target of the Prime Minister, to half inflation t