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The CPI number is high because rents are high. Every other measure of CPI has dropped. But housing prices and rents just won't budge. This is a battle between
by nine_zeros 4y ago
The CPI number is high because rents are high. Every other measure of CPI has dropped. But housing prices and rents just won't budge.
This is a battle between the fed and sticky rent-seeking homeowners. Everyone else is a pawn. Our healthcare, livelihoods and families are mere collateral damage.
- throwaway9870 4y agoPlease clarify what you mean by "dropped". If you are talking over a 12 month window, that is most certainly not the case: https://www.bls.gov/cpi/ https://www.bls.gov/cpi/ Ignoring CPI, inflation is rampant in many other areas such as agriculture (basically everything is up) and manufacturing of good (again, everything seems up, metal, paint, fasteners, etc.)
- nine_zeros 4y agoIn the final CPI number, "Services less energy services" has the highest weightage. https://www.bls.gov/charts/consumer-price-index/consumer-price-index-relative-importance.htm https://www.bls.gov/charts/consumer-price-index/consumer-pri... "Services less energy services" contains Shelter, transportation and medical services, of which, shelter has the highest weightage: https://www.pewresearch.org/fact-tank/2022/01/24/as-inflation-soars-a-look-at-whats-inside-the-consumer-price-index/ https://www.pewresearch.org/fact-tank/2022/01/24/as-inflatio... which is still increasing month over month as much as other things but increases CPI measure disproportionately higher: https://www.bls.gov/news.release/cpi.nr0.htm https://www.bls.gov/news.release/cpi.nr0.htm