The CPI is meant to account for this. It's weighted, and accounts for the changing quality of goods. The weighting goes something like: Housing, Transportation

The CPI is meant to account for this. It's weighted, and accounts for the changing quality of goods. The weighting goes something like: Housing, Transportation, Food and Beverages, Recreation, Apparel, Medical Care, Education and Communication, Other Goods and Services; in order of importance. The fact that an iPhone costs less this year than 5 years ago isn't a huge issue for most people. Rising rents (or imputed rents), transport costs, food costs, etc is more important. So yes, in 1969 a flat screen TV (or whatever the equivalent was) would have cost a lot. But food, housing, and so on was cheap. The CPI already accounts for this. Now, the tin-foil brigade who think CPI is flawed typically argue that basic necessities (housing, food) have gone up a lot more; which is the point I think you are trying to make. And it's kind of valid. You are also arguing the opposite point - that new products are often better than old ones. The CPI aims to strike a balance - some stuff is more expensive, and other things are cheaper. But overall, CPI is a pretty valid way to compare how much bang consumers get for their buck.