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That's very surprising! Housing prices obviously went up, so how did this not show up in a higher cost of living?
by byrneseyeview 16y ago
That's very surprising! Housing prices obviously went up, so how did this not show up in a higher cost of living?
- yummyfajitas 16y agoThe cost to purchase a home went up, but that isn't the same thing as the cost of housing, since home purchases have a strong component of speculative investment. An analogy to make it more obvious: imagine I sell packages consisting of 1 banana + 1 share of Chiquita stock. If Chiquita stock goes up, does that mean we had food price inflation?
- byrneseyeview 16y agoIf most people can't--or won't--purchase the banana without the share, then it doesn't really matter. It would be analogous to the price of food items staying constant, but the price of, e.g., packaging going up.