Originally Posted by yakers
The CPI is not the *real*inflation rate.
Will the *real* inflation rate please stand up?
So, who among us buys a new house each year (without selling the old one)? Does it make sense to include the rising cost of houses in an inflation index?
There are many measures of inflation. Another one economists use is called the GDP Price Deflator, which is considered the most "unbiased" measure. And it has generally been a point or so below the CPI.
The CPI is what it is. Nobody is trying to trick you.