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https://www.bls.gov/cpi/tables/relative-importance/home.htm https://www.bls.gov/cpi/tables/relative-importance/home.htm What do you find controversial, and wou
by gruez 5mo ago
https://www.bls.gov/cpi/tables/relative-importance/home.htm https://www.bls.gov/cpi/tables/relative-importance/home.htm
What do you find controversial, and would cause a material difference in the headline inflation rate?
- VirusNewbie 5mo agoHousing has a massive lag when it comes to CPI. CPI works by asking how much people pay for rent. If home prices raise 20% in one year (not at all unreasonable in various times in the last ten years), it takes a long time for that to be reflected as many people have their rents fixed, some people have rent control, some landlords will only raise rents on new tenants, etc.
- gruez 5mo ago>Housing has a massive lag when it comes to CPI. >[...] many people have their rents fixed, some people have rent control, some landlords will only raise rents on new tenants, etc. In other words, rent is lagged when it comes to the CPI... because the rent people actually pay is also lagged?
- VirusNewbie 5mo agofor existing, well established renters, sure. For new renters, or people who move, or people who face housing insecurity, or people who want to buy homes, it's much higher and not accurately reflected in CPI.