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Headline inflation measures shouldn’t ignore costs of home ownership

Hampl, Mojmir, Havranek, Tomas, (2017), “Headline inflation measures shouldn’t ignore costs of home ownership”, VoxEU, 12 September

Seven out of every ten Europeans live in their own homes, yet Europe’s most important inflation measure excludes the costs associated with owner-occupied housing. This column argues that including the costs of home ownership would prove beneficial to the conduct of monetary and macroprudential policy. It would also bring the measure closer to what most people consider inflation to be.

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