UK house price index is 18.7% higher than the pre-economic downturn peak of 2008
These are the two words which must not be mentioned along the lines of the rules of Fight Club in UK inflation measurement. We get to see why just by observing the numbers they provide.
On a seasonally adjusted basis, average house prices increased by 0.8% between September and October 2015……UK house prices increased by 7.0% in the year to October 2015, up from 6.1% in the year to September 2015.
Plenty of inflation here if we bothered to officially look! If we look at the change in the credit crunch era then the official line that it is pure wealth is simply laughable.
In October 2015, the UK mix-adjusted house price index increased by 0.1% from the previous record level witnessed in September 2015 to reach a new record of 220.1 (Figure 2). The UK index is 18.7% higher than the pre-economic downturn peak of 185.5 in January 2008.