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maggiesyg t1_ivrrls3 wrote


Miserly_Bastard t1_ivs3flt wrote

Standard metrics of inflation abysmally fail to capture the increase in the cost of repair and replacement of buildings and infrastructure over the span of decades. Moreover, rent is included in CPI but asset values relative to rents have ballooned into the stratosphere and are not included in CPI. When a tornado blows away a house, it destroys an asset.

It actually gets worse. The CPI is full of convolutions (just Google "hedonic adjustments") rendering it meaningless beyond the span of a few years.