inflation down what dose this mean for house prices

zipwen1

any experts out there who can give their opinion.
dose this mean that the interest rate increases have had the desired affect and there wont be anymore?
also dose this mean that a crash is less likley and prices will stablise

Generali

The fall in the CPI makes rate rises much less likely. This, in turn, makes an imminent fall in house prices less likely.

Houses are very expensive at the moment by any historical measure and so are likely to fall at some point in the future. When (or if) that point will come, of course, is anyone's guess.

zipwen1

thanks for clearing that up for me

martyn4764

Looks like a lot of the reduction was down to the 'January' sales, so may be temporary:

Household goods down 5.6%
Clothing & Footwear goods down 4.2%

Generali

martyn4764 wrote:

Looks like a lot of the reduction was down to the 'January' sales, so may be temporary:

Household goods down 5.6%
Clothing & Footwear goods down 4.2%

Wouldn't that be compared to the Jan sales 2006?

"The largest downward effect on the CPI annual rate came from transport costs...".

sm9ai

Transport, really?

We all know this is made up on the spot (well certainly seems like that!) but how does a couple of pence reduction in fuel reduce inflation by 0.3% but when it was at $80+ a barrel it barely effected it?

Also did the new tax on air travel get taken into account?

Generali

sm9ai wrote:

Transport, really?

We all know this is made up on the spot (well certainly seems like that!) but how does a couple of pence reduction in fuel reduce inflation by 0.3% but when it was at $80+ a barrel it barely effected it?

That's what it says in the spin. Trying to work it all out from the raw figures but in the battle between my cold and my brain, the cold is winning.

sm9ai wrote:

Also did the new tax on air travel get taken into account?

That didn't start until 1st Feb.. Expect the weighting of transport to be revised downwards in next months figures!