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Move To Include Cost Of Housing In Cpi

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http://www.ft.com/cms/s/0/35ca2dce-e78b-11df-b5b4-00144feab49a.html

What effect does having it excluded on the way up (HPI) and included on the way down (HPC) have. Is this a deliberate tactic are are they really not expecting the HPC? Presumably (assuming HPC) it will hide real inflation and enables interest rates to be kept low but surely this is only masking the symptoms? How is this going to effect things?

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Peoplw will swallow it hook line and sinker, and copy of angling times.

Like they always do, heh at in HK they openly admitted for several yers they were after an inflationist policy.... my dad regularly grumbles about the 8-9% inflation fraud index

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A cynical ploy by the powers that be to mask their robbing inflation. However, it does show the coalitions view on where house prices are going that they would want to include the figures now in order to help ease upward inflation with deflationary house prices. They certainly wouldn't be adding them on if they saw them going up.

Things like this and the Moneymarketing article shows the lack of pokitical will to prop up the market.

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In February 2003 the Bank of England was 'targetting' RPI. Brown didn't instruct the 'independent' MPC to target CPI until December 2003.

In any case, the Worldwide fashion for setting monetary policy by targetting the price of a basket of consumer goods and services is a crackport crazy idea and the main cause of the debt bubble. It's another manifestation of that plague of the age: managerialism.

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A cynical ploy by the powers that be to mask their robbing inflation.

Heard of the expression "quit while you're ahead? Sadly you didn't:

... that they would want to include the figures now in order to help ease upward inflation

Ease upward inflation on what?

However, it does show the coalitions view on where house prices are going ... deflationary house prices. They certainly wouldn't be adding them on if they saw them going up.

True. However, call me glass-half-empty if you like, but I'm the kind of person who prefers to see the falls rather than celebrate a pronouncement thatthey will occur, accompanied by action to moderate them.

Things like this and the Moneymarketing article shows the lack of pokitical will to prop up the market.

The government has no money, and yet with the help of the BoE, is pumping billions into the banking sector. We are running a huge deficit, and yet we intend to chop a piddling £80bn over four years. The new homes budget has been slashed, keeping a lid on supply. What could one possibly think of to intervene in the market, above and beyond that already conducted?

Oh, I know: exactly what this article is descibing. And you call that "no political will". :rolleyes:

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Heard of the expression "quit while you're ahead? Sadly you didn't:

Ease upward inflation on what?

True. However, call me glass-half-empty if you like, but I'm the kind of person who prefers to see the falls rather than celebrate a pronouncement thatthey will occur, accompanied by action to moderate them.

The government has no money, and yet with the help of the BoE, is pumping billions into the banking sector. We are running a huge deficit, and yet we intend to chop a piddling £80bn over four years. The new homes budget has been slashed, keeping a lid on supply. What could one possibly think of to intervene in the market, above and beyond that already conducted?

Oh, I know: exactly what this article is descibing. And you call that "no political will". :rolleyes:

What a lovely reply.

Being an FTB in 2005 and having STR'D in 2007 and spread the funds, off the back of a 100% mortgage, across sterling, gold and mining shares i would say yes i have heard 'of quit while you are ahead;. Although judging your mardy **** and frankly pompous response you will find fault in the management of my str fund!

Action to moderate them is happening naturally. See them every week on property bee. The action you long for will be the natural end game for hpi - the vanishing of cheap credit, record levels of pesonal debt and inflatory factors continuing to squeeze household spend, a govt drowning in defecit that cannot afford long term to QE without harming the very market that you proport that it keeps propped up. This is happening now.

When did you stop buying food, petrol and heating/power? I take it that you must have missed inflation in these vital areas. So adding housing that many are expecting to fall at least 10% next year, to measures of inflation would ease these figures as we continue to buy goods with a weakened pound.

Now there's me thinking QE was used to fund a shortfal in govt. funding, how silly! So where is the increase in mortgage products and transactions stemming from QE? £200 billion - even if it was directed at the housing market which i find a naive view - it only stagnated the falling market and certainly did not bring back the halcyon days of 100k transactions a month! As for supply - Japan is the example of this false argument..

I would suggest this source is a better judge of political will than your your irasicable post :rolleyes::rolleyes::rolleyes::rolleyes:

http://www.moneymarketing.co.uk/mortgages/coalition-ready-to-let-property-values-fall/1015197.article

Edited by Brave New World

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Yes.

They have a cunning plan to keep 'official' inflation low.

Don't trust them.

It's easy to see the impact of this. If prices stay broadly flat and everything else rises at 5% per annum, housing will form a large part of the weighting and so CPI will be close to zero the whole time.  Cue for more QE.

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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