Owner-Occupied Housing, Inflation, and Monetary Policy

Robert J. Hill*, Miriam Steurer, Sofie Waltl

*Corresponding author for this work

Publication: Scientific journalJournal articlepeer-review


Owner-occupied housing (OOH) is currently excluded from the harmonized index of consumer prices (HICP) in Europe. Using microlevel data for Sydney and aggregated data for the United States, France, and Germany, we compare the impact of alternative treatments of OOH on measured inflation. We recommend including OOH in the HICP using a simplified version of the user-cost method. This would improve the harmonization of the HICP, help close the credibility gap between measured inflation and public perceptions of it, and allow the ECB to lean against a housing boom without departing from its inflation target.

Original languageEnglish
JournalJournal of Money, Credit and Banking (JMCB)
Publication statusE-pub ahead of print - May 2023

Austrian Classification of Fields of Science and Technology (ÖFOS)

  • 502051 Economic statistics

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