Inflation in Britain eases

LONDON - Reuters

Britons are becoming less worried about their finances as inflation eases and employers look more prepared to raise wages, surveys showed yesterday, fuelling hopes that consumers may lend the fragile economy some support this year.

The improvement in the Markit Household Finance Index survey adds to evidence that consumers are slowly regaining confidence, supporting the Bank of England’s view that consumption will start growing again this year. Mortgage lending rose and house prices picked up in January.

Households reported the lowest degree of pessimism about future finances since April 2010, survey compiler Markit said. The measure of current finances, Markit’s Household Finance Index, rose to 38.7 in February from 36.4 in January, still well below the 50 mark separating improvement from deterioration.