US housing starts fall, inflation rises

The US housing recovery suffered a setback in May. A report on Tuesday showed that housing starts in the US fell 6.5 percent last month while building permits fell 6.4 percent.

Another report from the US on Tuesday showed that consumer prices rose 0.4 percent in May. It was the largest increase since February 2013 and pushed the 12-month inflation rate to 2.1 percent, the highest since October 2012.

In contrast, UK inflation fell to a 4½-year low of 1.5 percent in May from 1.8 percent in April, a report on Tuesday showed.

Another report on Tuesday, though, showed that UK house prices rose 9.9 percent in April, their biggest annual rise since June 2010.