It’s not meant to measure inflation. It’s supposed to measure the cost of consumer goods, but instead they say it’s about “overall cost of living” to justify the manipulation.
It’s supposed to measure the cost of consumer goods
Because consumables are what are frequently purchased to be able to observe inflation taking place.
It wouldn’t make sense to track houses, for example. People only buy those once, maybe twice in their life. You would have no idea how their perception of the value of the dollar is changing watching that.
It’s not meant to measure inflation. It’s supposed to measure the cost of consumer goods, but instead they say it’s about “overall cost of living” to justify the manipulation.
Because consumables are what are frequently purchased to be able to observe inflation taking place.
It wouldn’t make sense to track houses, for example. People only buy those once, maybe twice in their life. You would have no idea how their perception of the value of the dollar is changing watching that.