You asked
I am making a request for an explanation of the reasoning behind the decision to exclude asset price appreciation from inflation calculations, despite the last decade being characterised by an increase in the money supply.
Specifically I am looking to establish whether any examination of the Cantillon Effect has ever been made and what justification there is for deciding not to make a methodology adjustment that includes asset price appreciation after such a lengthy period of experimental monetary policy.
We said
Thank you for your recent request.
We do not hold any information on examination of the Cantillon Effect.
You may find this article useful, which explains why asset prices are not included in our inflation measures, in the context of housing costs https://blog.ons.gov.uk/2017/01/10/including-housing-costs-in-measures-of-inflation/
If you have any further questions, please email cpi@ons.gov.uk.