House price inflation was a bit more robust in August than expected, Nationwide's figures show, even if they do add to the picture of a slowing market. The 0.6 per cent pace chalked up over the month would imply somewhere between 7 and 8 per cent annual inflation if it carried on for the next year.

The political storm brewing over Labour's plans to build new homes has this week underlined the tightness of supply in the property market. That effect lies behind a string of upside surprises on the housing front.

Today came another one, from the Bank of England: new mortgage approval numbers, which had been expected to fall back in July, were unchanged from the previous month at 115,000.

Whether the Bank chooses to raise rates now is a moot point, as in the longer term, developments in the financial world may have increased the cost of borrowing enough already.

The real worry is that in a month (July) when interest rates were increased and were forecast to rise again, there was no discernible impact on people's willingness to take out loans.

A house price crash is not on the cards, in most analysts' view; but the cost of mortgages could still rise to painful levels.

Are consumers overstretching themselves, and underestimating the dangers ahead? Quite possibly. A hint of this comes from the Bank's data on consumer credit: the three-month average growth rate of unsecured borrowing, such as credit cards and bank loans, has risen sharply since May.

Trust the people is a good politician's slogan. It may not be so helpful for central bankers. Today's figures suggest that some consumers are failing to think about risk in almost the same way as the high-rollers of the financial markets.

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