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BoE: Economic growth will be slower than expected

Mark Carney, the Governor of the Bank of England (BoE) has said that inflation is more than likely to fall below 1% over the next six months. Its growth expectations for next year have been cut from 3% to 2.9%.

Poor families hit by gap between costs and wages

Poor families are struggling to make ends meet because of a sharp rise in the price of basic goods in recent years.

Since 2008, the cost of necessities has risen 28% while average wages have only gone up 9%, according to a report from charity the Joseph Rowntree Foundation (JRF).

The cost of basic goods has soared since 2008. Credit: PA Images

The JRF found a single person needed to earn £16,300 a year to afford a minimum acceptable living standard, while a couple with two children needed to be bringing in £40,600.


Carney: Interest rates rise warning 'was a personal view'

Bank of England Governor Mark Carney said his warning that record-low interest rates will rise sooner than markets expect was "a personal view."

ITV News Economics Editor Richard Edgar reports:

Carney: No acceleration in 'actual earnings' growth

Bank of England Governor Mark Carney told MPs there has not been an acceleration in "actual earnings" growth.

He told the Treasury Select Committee, "Since 2008 there's only been six individual months in total where average weekly earnings has been above inflation".

ITV News Economics Editor Richard Edgar writes:

House prices 'spinning further out of control'

Official figures showed the average UK home is now valued at £260,000. Credit: PA

House prices are "spinning further out of control", a leading housing charity has warned after figures showed a 9.9% annual rise in UK values.

Campbell Robb, chief executive of Shelter, said: “Each rise in prices means more people stuck living in their childhood bedrooms, or trapped in the cycle of moving from one expensive rented home to the next.

“Worryingly, as house prices continue to rise some will be tempted to overstretch themselves in a frantic bid to get on the property ladder. But with interest rates currently at historic lows it’s a real concern that many might find themselves struggling to make ends meet in the future."

He added: “This is a problem that the government can fix. We need a new generation of quality part-buy, part-rent homes, and to make sure that small builders can get hold of the land and finance necessary to build them."


Brits 'still feeling the squeeze' despite inflation drop

Brits are "still feeling the squeeze" despite inflation falling to a four-and-a-half-year low, Labour claim.

Wages after inflation have now fallen by over £1,600 a year under David Cameron and the link between the wealth of the nation and family finances is broken.

A huge turnaround would be needed to ensure working people aren’t worse off than when this Tory-led government came to office.

– Catherine McKinnell, Labour’s Shadow Treasury Minister

Inflation 'could fall to 1% by end of the year'

Inflation could fall to 1% by the end of the year, a leading economist has claimed.

Samuel Tombs, UK economist at Capital Economics, said producer price indicators, the strength of the pound making imports cheaper, and political pressure on energy bills were likely to see inflation ease further for the rest of the year.

"Against this low inflation backdrop, we believe the MPC is likely to tread cautiously and raise interest rates only very gradually over the coming years," he said.

First-time buyers face surge in house prices

The average cost of a first home rose by 10.7% in a year. Credit: Chris Ison/PA Wire

First-time buyers face having to pay 10.7% more to get on the property ladder than they did a year ago, new figures show.

The typical starter home now costs £199,000, according to the Office for National Statistics.

The news follows calls for the Bank of England to take action against spiraling values, with some urging a dilution of the controversial Help to Buy scheme for buyers with lower deposits.

The Government says the scheme is working as intended to reach people who need its help the most.

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