Inflation not calculating Housing Inflation Correctly
Inflation not calculating Housing Inflation Correctly
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Inflation numbers do not accurately show the inflation numbers. In comparing to the old way of computing the Consumer Price Index used 40 years ago, the inflation number is more or less running 12%. Now when the numbers are computed for rents on housing, it is done in a different way than it was done 40 years ago. Also, housing is about 31% of the CPI (consumer price index) and therefore because rental leases have not ended all at the same time and it is predicted landlords may raise rents 10% or more, inflation will not down drastically. Additionally, energy, gas is only 3% of the CPI.