Because the interest component moves faster than the house component, its decline affects the MIC more than the house component’s rise, so the overall MIC falls. [...] And when interest rates rise, the faster movement of the rising interest component dominates the slower movement of the falling house component, so the overall MIC rises. [...] Lower interest rates lowered the interest component of the MIC and raised the house price component. [...] The rest of the CPI was up 2.0 percent in January – it was the MIC that pushed the overall index up 2.9 percent. [...] The influence of the interest component of the MIC is fading.
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