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> To arbitrarily exclude the biggest expense to consumers from CPI is pretty misleading. Why is there so much misinformation about the CPI? Literally the bigge
by H8crilA 6y ago
> To arbitrarily exclude the biggest expense to consumers from CPI is pretty misleading.
Why is there so much misinformation about the CPI? Literally the biggest component of the US CPI (at 33%) is housing/shelter. See Table 1, column Relative Importance: https://www.bls.gov/news.release/archives/cpi_02102021.htm https://www.bls.gov/news.release/archives/cpi_02102021.htm
At least get familiar with the definition before criticising anything.
- robocat 6y agoCPI does NOT include housing in the UK - and this article was written from a UK perspective. In the UK: “The CPI takes no account of housing costs”. “the CPIH does include [housing costs but] it uses an approach called ‘rental equivalence’ – not the mortgage payments but how much rent the householder would pay for an equivalent property”. “the RPI takes account of mortgage interest payments”. From: https://www.thetimes.co.uk/money-mentor/article/rpi-versus-cpi/ https://www.thetimes.co.uk/money-mentor/article/rpi-versus-c...
- throwawaycuriou 6y agoYou are correct about its inclusion but how home asset inflation is measured is arguably faulty - more akin to an 'implied rent'. https://wolfstreet.com/2021/03/11/house-price-inflation-in-cpi-is-of-course-baloney-but-it-accounts-for-1-4-of-total-cpi/ https://wolfstreet.com/2021/03/11/house-price-inflation-in-c...
- BurnAphterRead 6y agohttps://wolfstreet.com/2021/03/11/house-price-inflation-in-cpi-is-of-course-baloney-but-it-accounts-for-1-4-of-total-cpi/ https://wolfstreet.com/2021/03/11/house-price-inflation-in-c...