Friday, 28 October 2016

Inflation: Housing – Parliamentary Written Answer

Dr Andrew Murrison:  To ask Mr Chancellor of the Exchequer, if he will make it his policy to reflect house prices in the calculation of inflation.

Simon Kirby: Inflation statistics are produced independently of government by the Office for National Statistics (ONS). The current main measure of inflation is CPI. This does not include house prices as these are an asset price and in line with international practice are not included in a consumer price index. However, it does include some costs associated with housing, such as rental prices and the costs of renovating and repair and maintenance of homes. The ONS also produces CPIH, which does include housing costs but is currently undergoing development work after the UK Statistics Authority found faults in its production.

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