By ADRIAN LOWCOCK 17/07/2009
Deflationary fears return
The Retail Price Index (RPI), which includes housing costs, dropped to -1.6% in June, from -1.1% in May as low mortgage payments due to low interest rates continue to impact on the figures.
Jobless rate highest since January 1997
Unemployment figures continue to move upwards, hitting the highest rate since January 1997. The Office of National Statistics said the number of claimants rose by 23,800 in June, much less than the 40,500 that was forecast by analysts. The claimant count, which measures the number of people claiming Jobseeker's Allowance, reached a total of 1.56 million or 4.8%. The unemployment rate has risen by 281,000 in the three months to May, taking the jobless rate to 7.6%.
House prices continue to fall
The Royal Institute of Chartered Surveyors (RICS) reported a slowdown in the rate at which house prices are falling. The RICS House Price Balance reported a better than expected -18.1% for the three months to June, compared to a figure of -43.8% in May, the best balance since September 2007.
Retail sales rise in June
The recent hot weather fuelled a 1.4% rise in like for like sales (excluding new stores) in June compared to the previous year. The rise followed a disappointing May figure where sales fell 0.8%. Total sales have increased by 3.2% over the year.