A month in repayments. Somehow, were supposed to spend less and find £750 extra a month to pay for that. So, you know, for many families, it is a terrifying situation. You know, if you have young families like ourselves who have been swayed into the Housing Market by government, whos advertised help to buy as an affordable scheme, right . When things become unaffordable, you cant simply turn around and say, thats your problem. A rise of 0. 25 Percentage Points would take the Bank Of Englands base rate to 5. 25 the highest since april 2008. For someone with an average Tracker Mortgage of £200,000, that would mean a rise of more than £23 a month. And for around 800,000 homeowners due to renegotiate their fixed deal in the second half of this year, it could mean an even bigger increase in their monthly repayments. Whites, good afternoon. But at this estate agent in salisbury, they say there are still more people wanting houses than there are properties available. A supply and demand is
And in the euro area, where wholesale Energy Prices feed through more directly to Consumer Prices. Where there is more uncertainty is around the time it will take the other non Energy Components of the Consumer Price of Consumer Price inflation to come down as well. Price inflation for food and Non Alcoholic beverages has been very high, but it does appear to have peaked. And as you can see in this chart, there are signs in the monthly figures that it has started to ease. And evidence collected by the banks Regional Agents suggests that a moderation in food inport prices is being passed through the supply chain to Consumer Prices. So we do expect that food Price Inflation will come down gradually over the rest of this year. The Shadow Chancellor has said the Interest Rate rise weve seen today is another hammer blow to families who are seeing their mortgages increase. Rachel reeves said that the government needs to force the banks and lenders to do more to Mortgage Holders help includin
Pain it also causes. The background to this is high inflation, we have a sequencing that Around The World, particularly sticky, or at least has been here in the uk. That is why the bank has been increasing Interest Rates to try and curb the spending and get that Inflation Rate down. Should they continue to do that today, on the one hand, we have an Inflation Rate in the uk that has been easing a little, and when you dig into some of the details, to look at Producer Price inflation, thatis look at Producer Price inflation, that is further down the supply chain, that is the price is that manufacturers and factories might be paying, suggestions are it could be coming down quite significantly now. On the other hand, headline inflation, 7. 9 , still four times the Bank Of Englands 2 target. When you strip out energy and food, which can be equally volatile core inflation, they are still not falling by enough, wage growth remains quite high as well, and then there are wage comparisons, and in
Responsibility for the fact that inflation in the uk is much higher than it is in comparable countries. In the us, it is 3 . In the eurozone it is 5. 3 . And yet, here in britain, inflation remains stubbornly at 7. 9 because of a decade or more of mismanagement by the conservative party. Lets talk to our work and money reporter peter ruddick. What does this mean for people with mortgages . It what does this mean for people with mortua. Es . , what does this mean for people with mortua. Es . , , what does this mean for people with mortauaes . ,. Mortgages . It was widely expected but unfortunately mortgages . It was widely expected but unfortunately that mortgages . It was widely expected but unfortunately that will mortgages . It was widely expected but unfortunately that will not but unfortunately that will not prevent the pain from hurting. Lets break this down, for people on a variable or a tracker rate mortgage, which tracks the Bank Of England base rate, they will see immediate im
Thank you. And thats bbc news at ten. Theres more analysis of the days main stories on newsnight, with kirsty wark, which isjust getting under way on bbc two. The news continues here on bbc one, as now its time to join our colleagues across the nations and regions for the almost a year since the start of the Women Life Freedom Protests in iran, we have a Special Report with defiant voices inside the country as the Morality Police double down on the repression of women. So how should the uk calibrate relations with iran . Well be joined by a Iranian American Human Rights researcher whose father was a political prisoner who died under house arrest and the former uk ambassador to iran. Also tonight, to raise or not to raise should the Bank Of England hike the Interest Rate tomorrow, or can the economy do its own work now . Two senior economists argue it out. The upcoming ruthergen and Hamilton West by election expected to be a major Snp Labour Battle could be a bellwether for the general