Schomberg et al write: “British inflation hit its highest level since mid-2014 in January at 1.8 per cent and many economists think it will pass 3 per cent this year.” This would be above the 3% upper bound of the Bank of England’s target inflation rate. However, the CPI inflation rate is a dysfunctional measure of inflation because of its exclusion of most homeownership costs and of housing prices. (The most recent estimates show an annual inflation rate of 7.2% for housing prices in December, up from 6.1% in November.) The experimental quarterly CPI-H(NA) series conceptually should provide a better measure of inflation, but it is only available quarterly and is still very much a work in progress. The inflation rate of the RPI excluding mortgage interest payments and council tax with a downward adjustment for the formula effect is currently the best monthly inflation measure as a macroprudential inflation indicator.