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> The basket of goods may include the price of gasoline, but does not include the cost of car insurance Seems like CPI in the US does include motor vehicle ins
by IanCal 7y ago
> The basket of goods may include the price of gasoline, but does not include the cost of car insurance
Seems like CPI in the US does include motor vehicle insurance though.
> but does not the cost of buying a health insurance
It does according to the business insider article.
Seems to include wireless telephone services and telephone hardware so I'd be surprised if that doesn't cover a mobile.
Where are you using for your list of the basket of goods?
https://www.businessinsider.com/breakdown-of-consumer-price-index-basket-2014-1?r=US&IR=T https://www.businessinsider.com/breakdown-of-consumer-price-...
- Rury 7y agoThere's many things CPI doesn't factor. For example house prices: https://www.thebalance.com/consumer-price-index-cpi-index-definition-and-calculation-3305735 https://www.thebalance.com/consumer-price-index-cpi-index-de... "Note that the CPI does not include sales price of homes. Instead, it calculates the monthly equivalent of owning a home, which it derives from rents. That's misleading. Rental prices are likely to drop when there is a high vacancy rate. It occurs when interest rates are low and housing prices are rising. People are more likely to buy houses when the market is improving. Conversely, home prices fall when interest rates rise. As the housing market deteriorates, people move into apartments. That makes rents increase." Anyhow, the point is that CPI is largely cherry picked data, and the way it factors things can be misleading. I wouldn't be surprised that it doesn't accurately measure people being priced out certain assets entirely.