CPI is supposed to measure the change in prices as it affects consumers. It's obviously not perfect. Not all consumers have the same type of spending. In parti

CPI is supposed to measure the change in prices as it affects consumers. It's obviously not perfect. Not all consumers have the same type of spending. In particular, the housing component... Anyway - if consumer prices go up 10%, but HH income goes up only 2% - then consumers have lost ~8% of their purchasing power.