Housing removed from CPI of New Zealand and England has allowed senior elements of the Anglo-Saxon heritage private central banking network to saturate these nations with counterfeit credit in order to rule them via enforced bankruptcy receivership under false pretenses in order that they then use their proceeds of crime to buy up the liquidated assets at distressed prices in order to then be able to toll booth the target societies back to within an inch of overt slavery; 20 February 2012 Deirdre Kent put this Official Information Act question to New Zealand Minister of Statistics; - Despite the fact that section prices tripled in fifteen years to 2007, land is not now included in the Consumer Price Index. This means that the official measure of inflation is unreliable as it is far lower than the actual figure. and received this reply; Today I received a letter back from the Minister of Statistics, Hon Maurice Williamson. I had heard that land went out of the CPI but couldn’t remember when or why so I sent in an Official Information request. The Minister dates the letter 14 Mar 2012 and says Dear Ms Kent Thank you for your letter of 20 February regarding the exclusion of the price of land from the Consumers Price Index (CPI) basket of goods. I am advised by Statistics New Zealand that land (i.e. residential section) was included in the CPI until the June 1999 quarter. Following a review of the CPI in 1997 land was excluded, taking effect from the September 1999 quarter. The 1997 review by an external advisory committee confirmed the CPI’s main purpose as being informing monetary policy setting, and that the CPI should be focussed on the concept of acquisition. The reason given for excluding land from the CPI from 1999 was that it was considered to represent the investment component of home ownership (with dwellings representing the shelter component). The September 1999 quarter CPI information release explained it as follows: A dwelling provides shelter over a long period of time. Over time land is not consumed and so can be considered to represent the investment component of home ownership. As investment expenses are outside the scope of the CPI the rebased CPI excludes expenditure on residential sections. Information on the sale of land is available from QV (qv.co.nz) and the Real Estate Insititute of New Zealand (reinz.co.nz). I trust this information meets your needs and thank you again for taking the time to write. Yours sincerely Hon Maurice Williamson Minister of Statistics. BoE boss wants house prices in inflation This is Money 22 July 2007, 12:00am The Governor of the Bank of England has admitted he is ‘surprised’ that rising house prices are not included in the official inflation figures, according the BBC. Mervyn King told Radio 4’s Money Box programme that he wished the Consumer Prices Index (CPI) – the measure that tracks the cost of goods and services – did include house prices, as the previous official measure, the Retail Price Index (RPI), used to. He said: ‘Some of these issues are controversial. I wish it did include housing, but it doesn’t – at least at present. Maybe one day it will.’ Since 1997 Mr King and the Monetary Policy Committee at the Bank of England has had the task of keeping the CPI around a target of 2%. It has raised interest as a method to reduce inflation if prices climb too sharply. However, critics have said that because the CPI does not include the cost of mortgage repayments, official inflation figures are artificially low. Some say this has created a bubble in the property market as house buyers are able to over-borrow with cheap loans. Currently the CPI stands at 2.4%, but the RPI – which includes mortgage repayments – stands at 4.4%. Economists expect the Bank of England to raise interest rates to 6% by September, something that could prove a problem for some homeowners struggling with large mortgages. Mr King said: ‘CPI is meant to be constructed in the same manner in all European countries, and so far the European statisticians have not worked out a way of how they can calculate the cost of housing in a way that can be done uniformly across Europe.’ Notwithstanding the limitations of the CPI, Mr King defended the record of the Bank of England in setting rates. He said: ‘The track record is pretty good, so if we have made wrong decisions from time to time, there can’t have been very many of them and they can’t have been that wrong.’ ‘The Monetary Policy Committee I think was well designed. I think it’s been successful for 10 years and I see no reason to believe that it cannot be successful for another 10 years and decades after that.’
Posted on: Sun, 09 Mar 2014 11:04:52 +0000
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