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There is a housing component to the CPI. It uses rents instead of home prices and makes some tradeoffs, but it seems fair to me overall. If you live in SF or NY
by jeffreyrogers 5y ago
There is a housing component to the CPI. It uses rents instead of home prices and makes some tradeoffs, but it seems fair to me overall. If you live in SF or NYC or similar cities it can seem that CPI underestimates inflation due to high rents/home price, but it is a national level metric, so that's somewhat expected.
- lotsofpulp 5y agoI think it is more class related. As income/wealth divide grows, the cost to move up to the next socioeconomic class grows. If you are expecting to have jumped up the ranks into a certain neighborhood or school district, a certain city, vacation to certain destinations, then those will have become further out of reach. It might be accurate to say the cost of your dreams or goals is increasing faster than official statistics.