It doesn't. It includes a survey based owners equivalent rents (OER), and a separate measure for tenant rents. Home prices used to be a factor in CPI calculati

It doesn't. It includes a survey based owners equivalent rents (OER), and a separate measure for tenant rents. Home prices used to be a factor in CPI calculations, but haven't been for decades now. It can be argued that rent is more relevant than valuations, since values fluctuate with rates... but ignoring valuations arguably allows asset bubbles to form more readily, which has its own downstream consequences. In general, the CPI is not well suited to its purpose as the data is highly lagged. There are public rent measures that are much more real time, and would allow Fed to act more readily on current data. https://www.bls.gov/cpi/factsheets/owners-equivalent-rent-and-rent.htm https://www.bls.gov/cpi/factsheets/owners-equivalent-rent-an...