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Automobile industry

UK House Price Inflation Hits 7% as Osborne's Policies Blamed

Strategic Insights

— 1 min read

The UK's house price inflation rate has hit 7%, with the Office for National Statistics (ONS) attributing the rise to Transport and alcoholic beverages and tobacco prices. The ONS report reveals that falling costs in these sectors contributed to the 7% increase, while falling clothing prices partially offset the rise. The inflation rate has been rising steadily, with the ONS reporting a 0.2% increase in the cost of Brent crude oil, meaning it now costs exactly $38 per barrel.

Key Takeaways:

  • The UK's house price inflation rate has hit 7%, the highest rate in over a year.
  • Transport and alcoholic beverages and tobacco prices were the main contributors to the rising inflation rate.
  • Falling clothing prices partially offset the rise, with a 0.1% decrease in prices between October and November.
  • The ONS report highlights the upward effects on the CPI 12-month rate, with a 1.5 pence per litre fall in petrol prices and a 0.6 pence per litre fall in diesel prices compared to last year.
  • Second-hand car prices rose by 1.6% this year compared to a fall of 1.0% a year ago.
  • The FTSE 100 index rebounded from Monday's meltdown, with a 0.2% increase in early trading.
  • European car sales for November showed a decline, while new passenger car registrations across the EU decreased by 3.4% compared to the same period last year.

Statistics:

  • House price inflation rate: 7%
  • Transport costs: 0.7% fall between October and November, compared to a 1.2% fall between the same 2 months a year ago.
  • Alcoholic beverages and tobacco prices: 0.1% fall between October and November, compared to a 1.2% fall between the same 2 months a year ago.
  • Clothing prices: 0.1% decrease between October and November.
  • Brent crude oil price: $38 per barrel.
  • US crude oil price: $36.34 per barrel.
  • FTSE 100 index: 0.2% increase in early trading.

Sources:

  • Reuters: Jamie McGeever (@ReutersJamie)
  • Caroline Hyde (@CarolineHydeTV)
  • Office for National Statistics (ONS)
  • Thomson Reuters
  • EU ACEA (Association des Constructeurs Europeens d'Automobiles)
  • FTSE 100 index
  • Sainsburys
  • Demotix
  • Cenovus Energy

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