Consumer Price Index

The Consumer Price Index or Harmonised Index of Consumer Prices (HICP) is the EU's new standard for ensuring that all countries with the EU now 25 countries, all measure inflation in the same way. Initially it was used to monitor convergence criteria for price stability in the Maastricht Treaty but from 1999 it has been used by the European Central Bank as the target measure of inflation for the EU. The UK HICP has been known as the Consumer Prices Index (CPI) since 10 December 2003. The Office for National Statistics (ONS) has constructed estimates and indicative figures from 1975 till 1993.

The purpose of this fairly turgid subject is to bring you some inflation data that corresponds to interest rates as well as house price growth. The main thrust of the argument is one for serious economists rather than enthusiastic 'scribblers' ! However it is fascinating to see the correlation, on paper, between these three key property indices.

The inflation data is expressed as the annual growth in the CPI.

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