My biggest beef with housing in the CPI is the fact that housing costs are underrepresented in general, and drastically underrepresented for some segments of th

My biggest beef with housing in the CPI is the fact that housing costs are underrepresented in general, and drastically underrepresented for some segments of the economy. The weight of housing in the index is something like 24%, but the average housing costs for the top 20% of incomes is closer to 29% of income, and it gets above 40% of income by the time you get to the bottom 20% of incomes. So by underrepresenting housing's weight by that much, combined with the fact that housing prices are growing much faster than everything else in the index, combined with the drastic disparity in housings effectively "felt" weight on inflation for people of different incomes, and you get this problem: things may seem fine to a banker on the Board of Governors of the Federal Reserve, while the bottom 20% rightly thinks our nation is going up in flames. There is a massive disconnect between what the metrics say and what people are actually experiencing, and nothing is happening about it because the metric still feels right to the wealthy people that control it.