UK Inflation below target level
The Office of National Statistics (ONS) has announced UK inflation figures for January have dropped below the Bank of England's target level of 2%, coming in at 1.9%, another positive statistic to add to the raft of recent good economic data coming from the UK, the seventh monthly decrease in a row.
It remains to be seen whether the recent rise in energy prices will spoil the party when February's figures are announced. However, lower inflation rates does cause market concern regarding interest rates, which will only go one way now and that is up but probably no more than 1/4% when they do. This will of course impact on the borrowing rates for house buyers but there is no way the Bank of England is going to upset the recovery of the housing market and make it harder than ever for first time buyers, with substantial rate increases.