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Economy
From Pants On Fire
[edit] House Prices
In 2003 the target measure of inflation was altered to the CPI which does not include mortgage interest. Therefore interest rate setting would not take account of the growth in houseprices.
Alister Darling, the chancellor, told the Daily Mail on 18th October, 2007 that
- "An unsustainable house price inflation is not good for individuals, is not good for the economy, so I think it will slow down"[1]
If house price inflation is not good for the economy why did New Labour let house prices rise for 10 years and not include mortgage interest in the inflation figures?
