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Inflation doesn't typically cover cost of living, does it? A poverty line basket of goods is different than someone wealthy. And is rent/real estate cost increa
by edmundsauto 2y ago
Inflation doesn't typically cover cost of living, does it? A poverty line basket of goods is different than someone wealthy. And is rent/real estate cost increases and insurance covered?
- nradov 2y agoYes, the CPI includes rent (and owner's imputed rent).
- nothercastle 2y agoPoorly, because of the owners imputed rent it lags a lot.
- nradov 2y agoWhatever. No inflation metric will ever be perfect. You can take the raw CPI input data and recalculate without owner's imputed rent if you want. The final result won't change much.
- vaidhy 2y agoCPI is not used for benefits calculation. Only OPM is used and OPM formula is 3x of USDA low-cost food plan. Nothing about rent, healthcare, age of the people etc. If they use CPI, it would be a much better scheme. SPM uses more variables, but it is not the official definition for poverty measurements.