Inflation Rears It's Nasty Head

Speaking of a housing bubble.  Prices of homes in England increased nearly 4% last month.

But don't worry the "fears of a housing bubble are misplaced" says Christopher Hope of The Telegraph:

A breakdown suggested fears of a nation-wide housing bubble are misplaced, with London leading the way with a 16.3 per cent year-on-year increase, compared with a more modest 4.9 per cent in the rest of the country.

So according to the story a 5% annual increase in rent is modest.  Is the average wage earner garnering 5% annual salary increases to keep up with inflation?  Not likely.    

Full story from The Telegraph.