The cost of housing is included in the inflation number via rent, not house prices. Rent is the true cost of housing; when you purchase a house you are not only

The cost of housing is included in the inflation number via rent, not house prices. Rent is the true cost of housing; when you purchase a house you are not only purchasing shelter but also a speculative investment that you expect to appreciate. Only the former is relevant to cost of living. > The risk is nobody being able to afford non-consumer goods like houses and other financial assets needed for retirement. You need to buy financial assets for retirement only so they can be later exchanged for non-financial goods like good and gas. Only the latter prices are relevant to you. It makes a difference whether you pay $1 or $10 for gas, but there is zero difference between buying stock at $100 and selling it later at a X% return, and buying stock at $1000 and selling it later at an X% return. The future rate of return might be relevant for your retirement, but that is both outside the scope of inflation and not proxied by the current asset price increases (which is what you are claiming inflation is supposed to also measure).