The British economy seems at last to be showing signs of recovery. The numbers in employment have increased slowly, although unemployment remains over 7 percent. The governor of the Bank of England has made it clear that there is unlikely to be a rise in the current ultra-low interest rates in the near future.
Inflation, however, remains above the Bank's target although the rate has fallen over the past year. House prices especially in London and the southeast are rising and there are already hints of another property bubble. It remains difficult for young people to get on the property ladder despite low interest rates. Many people in their 20s must continue to live with their parents unless the latter can help put up the deposit needed to buy a house or an apartment.
There have been significant increases in the cost of food and energy. Clothing prices have been relatively stable. The cost of electrical goods has shown some reduction. Childcare costs have continued to rise