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Oil Prices And The Price Of Bricks & Mortar

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Whilst recently looking at historical oil prices ( http://www.eia.doe.gov/emeu/cabs/AOMC/Overview.html ), it occurred that there was a correlation with house prices to some degree ( http://www.housepricecrash.co.uk/graphs-av...nings-ratio.php ). Notice the spikes in 80, 90, 04-06.

Does anyone have a view on why this is? The only explanation I can offer is that the prices are reflecting the amount of money available to buy the commodities in question.

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Guest wrongmove

It looks like higher inflation leads to higher prices for assets and commodities.

The difference this time is that, while we have asset/commoditity inflation and large rises in money supply (M4 in UK or M3 in US) we do not have the high general inflation we had around 1980 and 1990. CPI is low (DVD players etc.) due to cheap imports and with the help of lowish IRs has counterbalanced the rises in housing and fuel costs.

For now.

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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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