UK inflation will quadruple to about 4 per cent in the second half of next year and cut disposable income, according to a leading think tank.The rise in prices will ‘accelerate rapidly’ during 2017 as the fall in sterling is passed on to consumers, according to the National Institute for Economic and Social Research. The revised figure is significantly higher than the 3 per cent it forecast in August. ‘Households have really got a choice. Do they spend less or do they start saving less?’ Angus Armstrong, director of macroeconomics at NIESR, told the BBC’s Today programme. Meanwhile, ratings agency Moody’s is thinking about downgrading the UK over Brexit fears. Kathrin Muehlbronner, a Moody’s senior vice president, said: ‘We would downgrade the UK’s sovereign rating if the outcome of the negotiations with the EU was a loss of access to the single market as this would materially damage its medium-term growth prospects.’ House prices House price growth ground to a halt in October after 15 successive month-on-month increases, according to the Nationwide Building Society. Nationwide said the rate of monthly change in property values was 0 per cent in October – marking the first time since June 2015 that prices have not increased month on month. The Guardian reports that the average UK house price in October was £205,904, which was 4.6 per cent higher than a year ago. The annual rate of growth has slowed, from a 5.3 per cent increase seen in September. Pensions
Pensioners are being told to check their National Insurance records after it emerged that thousands of people are being paid too little state pension, according to the Daily Mail.
Mistakes in official records mean around 30,000 people are being underpaid the state pension, the Department for Work and Pensions has admitted.
It is feared that many people are missing out because of incorrect information held on government computers.