Oil sees biggest one day fall since early 1990sFrom peak to trough oil fell by over $10 a barrel yesterday, and this morning when we took our daily reading stood at $138, that’s 6.8 dollar a barrel lower than the same time yesterday. (Prices from the New York Mercantile Exchange). Admittedly, in early June oil was cheaper than this. For that matter, until five weeks ago the current price would have been an all-time record. Even so, these days we need to make the most of falls like this, and ask, is this the first stage in the fall in the price of oil to more sustainable levels?
Strange days indeed, as plans develop for government to prop up house prices
“Strange days indeed,” said John Lennon once. Yesterday saw two new ideas for government intervention to prop up the housing market. The Council of Mortgage Lenders wants to see the Bank of England provide guarantees for mortgage-backed securities and covered bonds. Meanwhile, housing Minister Caroline Flint wants to see a scheme introduced to help would be first-time buyers save up for a deposit. Both ideas are interesting, but is it not the case they miss the point?
Inflation surges again, but wages go nowhere
And that devilish dilemma got a lot more devilish. Inflation is up again. Now the CPI rate is 3.8 per cent. The highest level in 11 years. The retail price index was up to 4.6 per cent, and even core inflation with alcohol, tobacco and food taken out hit 1.6 per cent.
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