Well, despite talk about how the UK is booming, and how the Bank of England needs to raise rates, there’s still no evidence of “overheating” at least as it’s traditionally understood (which is surging prices).
Inflation remains quite tame. In fact, the UK CPI, as just reported by the Office of National Statistics (.pdf) has hit its lowest level since 2009, with price gains falling from 1.8% to 1.5%.
Here’s how the government breaks down the report: “Falls in transport services costs, notably air fares, provided the largest contribution to the decrease in the rate. Other large downward effects came from the food & non-alcoholic drinks and clothing sectors. The largest offsetting upward effects came from motor fuels and recreation & culture.”