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Hpi And Inflation

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Many previous threads have bemoaned the use of CPI as an inflation measure as it doesn't include housing. This presupposes that if HPI were taken into account inflation would be much higher - I have gone with this train of thought.

I now wonder if I have mis-understood the way they correlate. What if wage inflation (which feeds through to the CPI) has been held in check through the wealth illusion of HPI? Now, when even VI's agree that prices will at best stagnate, the rising cost of living can no longer be ignored by the general population and the pressure on pay will mount.

Have I misunderstood the way this could work (probably, and I know many other factors have to be taken into account)?

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  • 301 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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