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Politics : Ask Michael Burke

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To: BGR who wrote (78678)	3/28/2000 11:31:00 AM
From: Michael Bakunin	Read Replies (1) of 132070

From an earlier posted piece, which is worth reading in its entirety: "The CPI's methodology has merit in that most may not feel the brunt of any acceleration of shelter costs unless they change residences. If the price increases on residential real estate hold, then the CPI is very much a lagging indicator of inflation. When the annual increase of the value of owners' equity in housing jumped up from 1983's 2.7% to the 12.5% average of 1984-1985, the annual increase of owners' equivalent rent would eventually rise from 1983's 2.5% to the 5.5% of 1985-1986." -mb

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