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Politics : PRESIDENT GEORGE W. BUSH
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To: Bill who wrote (726873)2/20/2006 1:03:45 PM
From: JBTFD  Read Replies (1) of 769670
 
CPI doesn't include the cost of buying a house. Their cost of housing measurement is called owners equivalent rent and measures the cost of renting.

So CPI is irrelevant as far as housing prices are concerned.

Of course if they did put actual housing prices in CPI we would be seeing big inflation and all the costs that are indexed to CPI would also rise dramatically. There is a built in motive to keep the stated inflation numbers low. It keeps government costs lower.
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