> But – and here is the great sleight of hand – the Bank has seen fit not to include house prices in its measures of inflation. So, throughout the 90s and 00s, they could then “prove” inflation was low or moderate and interest rates meandered lower.
Aren't rents included in the CPI? I would be surprised if they weren't since it's a pretty huge part of most people's monthly expenses.
Then it would either mean that the rents rose along with the house prices (in which case this effect is included in the inflation figures) or that the actual housing costs didn't increase -- it's just less profitable to buy and more to rent.
Aren't rents included in the CPI? I would be surprised if they weren't since it's a pretty huge part of most people's monthly expenses.
Then it would either mean that the rents rose along with the house prices (in which case this effect is included in the inflation figures) or that the actual housing costs didn't increase -- it's just less profitable to buy and more to rent.