U.K. inflation fell to its lowest rate in 4 1/2 years in May as food and transport costs declined, providing Bank of England policy makers breathing space over interest rates.
London house prices rose at their fastest pace since just before the panic at Northern Rock Plc marked the start of the financial crisis in the U.K.
European Central Bank President Mario Draghi signaled policy makers are ready to take action in June should they see low inflation becoming entrenched.
U.K. retail sales increased for a third month in April as a buoyant property market bolstered spending on household goods and price discounting saw food sales rise at the fastest pace in three years.
Europe’s economy would be hurt by a sustained disruption to air travel caused by last week’s Icelandic volcanic eruption, said economists at Goldman Sachs Group Inc. and IHS Global Insight.
U.K. mortgage approvals unexpectedly fell in March as lenders raised borrowing standards ahead of new affordability tests that came into force last month.
"There is a desire to have a decent amount of properties available to rent because a lot of people can't afford to buy houses."
- Howard Archer on Jul 15, 2014