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Britain Inflation and housing: joined at the hip

Britain’s recent economic past is closely tied with the fortunes of the housing market. It does not look like that will change any time soon. – Graphic by Vincent Flasseur The latest official figures show a familiar pattern: low rates have a much bigger impact on house prices than they do on inflation, which turned negative again in September, never seen before this year since March 1960. London house prices tend to overshoot but the national figures tell a similar tale. Very little has changed recently, especially the interest rate. Reuters   Ross Finley, Global Editor David Kern, chief economist at the British Chambers of Commerce , said they expected inflation to remain at or below 0% for most of this year. "Our forecast is that annual CPI inflation will start to creep upwards early in 2016, but will remain below the 2% target well into 2017," he added. "The benign outlook for inflation is also reinforced by our quarterly economic survey, which sho...