So, in this sense, if one is trying to assess what economists would call the Bank’s “reaction function” using particular price series, underlying measures would probably be more helpful than the headline rate.
One of the reasons for this is simply that this is where much of the action has been over recent years; activity and prices in the markets for most other types of property, other than perhaps rural property, have been relatively more subdued. Another reason is the role that residential construction plays in economic growth.