April 13, 2016

Item From Ian — Disguised Inflation

Ian says:  “Are rising house prices really inflation in disguise?”
From Dominic Frisby in the Guardian:

The fraud persists today. The Bank of England says inflation is 0.3%. Really?

With house prices up by 10% last year?”

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Comments

  1. Please just a little analysis before posting. Inflation is are average costs for everything (more or less). Only small percentage of people are purchasing a house in a particular year plus many rent. Thus the number of people spending 10% more for housing is pretty small. Plus housing is about 1/3 of household costs.

  2. Also, no mention of the corresponding drop in mortgage / interest costs? And why isn’t the cost of “housing” better reflected by rents?

  3. “An acre of rural land worth £10,000 becomes an acre of land worth as much as £1m once it has planning permission. That is an expensive and needless cost of government.”
    This article is a comprehensive indictment of planning departments, government deficit spending. Is also a call for austerity and to allow building on the ALR.
    Altogether a Guardian article that is extremely libertarian. Amazing that it got past the editors.

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