Topics discussed in this commentary include:
- The world economy, which shows signs of recovery.
- Inflation abroad, which continues to ease, despite rising (non-oil) commodity prices.
- The decline in UK cost and price inflation.
- Recovery in the domestic economy, with housing currently a buoyant sector.
- External trade, where striking changes have occurred in recent years.
- The distribution of income between earnings and profits. Average real pre-tax earnings of those in work have risen in the recession, though real personal disposable income in total has fallen.
- Private sector financial transactions, where large increases in borrowing have accompanied growing holdings o/financial assets in recent years.