Inflation has risen, from 7% year-on-year in January to 14% in October, thanks mainly to a rise in the price of housing and basic services as subsidies have been withdrawn.

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Mr Goodhart argues, therefore, that a rise in the price of a house (a claim on future housing services) or a share (a claim on future dividends) should be counted as inflation, just as much as a rise in the prices of carrots or cars.

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Meanwhile, the Federal Housing Finance Agency's February home-price index showed a monthly rise of 0.7% in February, while new-home sales for March rose 1.5% to a seasonally adjusted annualized rate of 417, 000.

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