Britain braces for an inflated deluge
The fastest pace of home price growth since 2014
Thursday – 10 Ramadan 1442 AH – April 22, 2021 AD Issue No. [
British inflation is expected to rise sharply in the coming months (Reuters)
London: “Asharq Al-Awsat”
“The inflation rate increased in light of the increase in gasoline and clothing prices, to recover from the declines recorded in February,” said Jonathan Atho of the Office for National Statistics. Food prices are down from a year ago.
British inflation is expected to rise sharply in the coming months, due to an increase in household regulated energy bills in April, the rise in global oil prices, and the comparison with prices a year ago when public isolation measures to combat “Covid” caused a decline in demand.
At the same time, the core inflation rate, which does not include food and energy prices, reached the most volatile 1.1% last March, compared to 0.9% last February.
Although the rate of inflation is still below the target level for the Bank of England, which is 2% annually, the bank expects the rate of inflation to rise during the current year as the British economy recovers from its worst recession in three decades. Last February, the bank expected inflation to reach 1.9% by the end of 2021, but many economists now expect it to exceed its 2% target before that.
Some analysts, most notably Andy Haldane, chief economist at the Bank of England, are concerned about the possibility of a higher rate of inflation when consumers spend about 150 billion pounds ($ 209 billion) in savings that consumers have accumulated during store and restaurant closures as a result of measures to combat the virus pandemic. The new Corona.
Separately, the Office for National Statistics in the United Kingdom reported yesterday (Wednesday) that house prices in the Kingdom rose in February at the fastest pace in more than six years, after the Corona pandemic forced buyers to reassess their housing preferences.
Average home prices rose 8.6% year-on-year in February, compared to 8% in January. This is the fastest growth since October of 2014.
The average home price was £ 250,000 in February, which is £ 20,000 higher than the same month last year. On a seasonally adjusted basis, house prices increased by 0.5% month over month, after rising by 0.8% in the previous month.
The construction sector was among the most affected sectors during the pandemic. In an indication of this, the British “Care Group” for construction and civil engineering announced yesterday that its profits before tax during the first half of the current fiscal year until December 31 last reached 9 million pounds, compared to 41.2 million pounds losses. Sterling during the same period last fiscal year. Operating earnings per share came to 4.8 pence, compared to losses of 22.1 pence per share during the same period.
At the same time, the company’s profits declined after accounting for seasonal variations during the first half of the current financial year to 27.8 million pounds to 30.7 million pounds. The earnings per share after calculating the variables amounted to 13 pence, compared to 15 pence during the same period of the last fiscal year.
At the same time, the group’s revenues declined during the first half of the current fiscal year to 1.62 billion pounds compared to 1.82 billion pounds during the same period last fiscal year. Revenue also declined, after accounting for seasonal variables, to 1.62 billion pounds, compared to 1.87 billion pounds during the same period.