Price rises could drive up inflation

THE European Central Bank said prices for residential buildings have risen so fast in some European countries, particularly Ireland, they need “close monitoring,” suggesting it’s worried the lowest credit costs in six decades may push up inflation.

Residential property prices in the dozen euro countries rose 7.2% last year, the most in a decade, the Frankfurt-based ECB said in its monthly bulletin for September.

Price increases were led by Ireland, Spain, Luxembourg and France, while price changes in Germany, Austria and Portugal were ‘subdued.’