• huge_clock@lemmy.world
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    1 year ago

    I don’t agree with putting home prices in cpi, because a small number of home sales would dramatically swing inflation, so yeah while it’s a really critical number for people looking to buy a home it is not a good litmus test for the average purchasing power when there are better imputed metrics like “owner cost or equivalent rent”.

    • Not_Alec_Baldwin@lemmy.world
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      1 year ago

      Are you suggesting that the amount a person spends on housing doesn’t impact their purchasing power? No wonder you don’t think it’s declining.

      Rent has jumped by 100-200% every 20 years since the Great Depression.

      Companies have started shifting to shrinkflation because they realized that raising their prices was so unpopular with their consumers.

      All of these things need to be considered and don’t get measured by CPI.

      • huge_clock@lemmy.world
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        1 year ago

        Housing costs are included in CPI. What I’m saying is i agree with the current methodology. Do you know what the current methodology is? It does make sense.