FinSu IVA

The cost of living has risen to an all time high since July 1992. Global fuel and food prices have rocketed, pushing inflation up 3.3%, said Bank of England governor Mervyn King.

The UK mortgage market remains subdued despite a slight recovery in April, the major banks say. The British Bankers' Association (BBA) figures show 38,704 new mortgages were approved for house purchases in the UK in April, up from 35,546 in March.

The Council of Mortgage Lenders (CML) has predicted a 7% drop in UK house prices during 2008. The CML expects there to be 35% fewer property transactions in England and Wales this year than in 2007.

Centrica, the owner of British Gas, has signalled that fuel bills could rise again as its profits are squeezed by higher gas and power prices.

The number of homeowners facing repossession orders after failing to keep up with mortgage payments is up, says the Ministry of Justice.