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"The example that comes up most often is housing. Critics point back to the early 1980s, when the Bureau of Labor Statistics (BLS) made a fundamental shift in t
by FollowingTheDao 4y ago
"The example that comes up most often is housing. Critics point back to the early 1980s, when the Bureau of Labor Statistics (BLS) made a fundamental shift in the way it calculates the consumer price index (CPI) for shelter."
Why did the BLS do this in the 1980's, no one is asking? Well, I will tell you, in a another simple chart:
https://www.macrotrends.net/2015/fed-funds-rate-historical-chart https://www.macrotrends.net/2015/fed-funds-rate-historical-c...
Check out where the FED rate was in the 1980's.
TLDR, they did not want housing prices to be included in inflation since they knew they were going to go on this rate lowering binge which would increase the price of housing.
The folks in that article are trying to tell you housing prices are cheaper because you are paying less per month???? What???? HA! No, they are hiding inflation by using rent equivalent, which is not even close to the real rent prices. If you are paying more to own a house (if you still have a mortgage you do not own your house) then housing is no2 more affordable! Wow, the doublespeak!!!