There is no doubt that as the economy emerged from Covid lockdowns in 2021, the world experienced a surge in inflation, not seen since the 1970s. There are many supply and demand factors, which have caused this unexpectedly high inflation. The first factor is that Covid lockdowns, especially in China and Asia, disrupted global supply …
A recent report by the Bank of England made for grim reading. UK Output is forecast to fall and inflation is predicted to rise to a level not seen since the early 1980s. The UK like many economies is facing short-term pressures – rising energy prices, supply shortages and slowing growth. But, the malaise of …
When I started teaching economics in the early 2000s, I remember quite a few commentators predicting imminent house price falls because house prices were overvalued by historical trends, I used to occasional dip into house price crash forums to see a debate about when prices would fall. Yet, since 2000, even accounting for the financial …
Readers Question: Why is it so expensive to rent a house in the UK? The average cost of renting a property in the UK is now £1,060 a month (£1,752 in greater London) statista. Between 2005 and 2022, the cost of private renting in England has increased nearly 40% (index from 82 to 114) The …
Oil prices have a significant effect on the consumer price index, though the correlation between oil prices and inflation is less direct than it used to be in the 1970s. St Louis Fed estimates a correlation of 0.27 between changes in the oil price and inflation. In other words, a sustained 10% rise in oil …
Readers Question: Does rising interest rates always result in a fall in house prices? No. It doesn’t always cause a fall in house prices. But, looking at historical data, when there is a sustained and significant rise in interest rates, it is very likely house prices will fall. For example, the 1981 and 1991 house …
Is net positive migration a factor behind the UK’s recent rise in house prices? Given the rapid rise in house prices since the mid-1990s and the corresponding rise in the number of immigrants, it is hard to avoid the conclusion that levels of net migration are having, at least, some effect on exacerbating the UK …
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