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BBC Radio 4's Money Box
Saturday 14 June
at 1204 BST
On Radio 4 and Online
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Talk of rising interest rates returned this week due to inflationary pressure, despite increasing unemployment and falling house prices.
Share prices have been down and up while oil prices hover close to $140 a barrel. Some predict that the price may hit $200 later this year.
Public expectations about inflation are also increasing and two separate groups of workers, tanker drivers and museum staff are on strike for higher pay settlements.
So what is going on? We asked independent economist Richard Jeffrey.
Further information/related stories:
Over 23,000 people took out 100% mortgages in the year to 31 March
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Negative equity
The continuing fall in house prices may result in some homeowners finding themselves in negative equity, owning a home that is worth less than the value of the mortgage.
Those most at risk are people who took out 100% mortgages when prices were at their highest.
The Council of Mortgage Lenders says that 23,200 people took out such mortgages in the year to 31 March 2008. This represents only around 2.5% of the total mortgages given out in that period.
We spoke to Amit from Watford, one Money Box listener who is already in negative equity, and Rob Clifford, chief executive of the national broker, Mortgage Force.
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Mileage is monitored through GPS technology
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Pay as you drive
Money Box has learnt that a pioneering 'pay as you drive' policy offered by the country's biggest insurer has been suspended.
Norwich Union launched the scheme eighteen months ago using satellite technology to
bill users for every journey made.
It promised to lower the premiums of people who avoided driving at night or during the rush hour, the peak time for accidents.
Bob Howard reported.
Further information/related stories:
Claims average £1,000 to £2,000 over 6 years (Source: LITRG)
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Overpaid tax
Millions of taxpayers will see their right to reclaim overpayments of tax reduced by almost a third when the Finance Bill 2008 becomes law.
Currently overpaid income and capital gains tax can be reclaimed for five years and ten months after the end of the year to which the claim relates.
Changes approved by MPs this week will cut this to just four years from April 2010. HMRC however will in some cases go back six years when claiming money back from the public.
We discussed the changes with Mervyn Kohler of Help the Aged and Anita Monteith, tax manager at the Institute of Chartered Accountants in England and Wales.
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Money Box listeners are frustrated by the lack of progress
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Faster credit card payments
The phased introduction of the new Faster Payments service began rolling out across banks and building societies on 27 May.
As Money Box reported at the time, although most bank customers are now able to receive faster payments, only a small fraction can actually send them.
In addition, two of the service's 13 founder members will not let their customers use the service to send or receive payments at all until later in the year.
Many listeners are now asking when they will be able to use the Faster Payments mechanism to make payments to their credit card.
We heard from one listener and discussed the issue with Sandra Quinn, from Apacs, the UK payments association.
Further information/related stories:
BBC Radio 4's Money Box was broadcast on Saturday, 14 June 2008 at 1204 BST.
The programme was repeated on Sunday, 15 June 2008 at 2102 BST.
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