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My understanding is that the index relies on estimates of what homeowners would pay in rent for equivalent housing.

If you think longtime homeowners are paying less, then substituting equivalent rent should push the CPI rate of inflation to be higher than the genuine rate. An overestimate.

So you think correctly calculated inflation is less than the CPI says?

I thought everybody who thinks it is inaccurate thinks it is an underestimate, that the government is covering up inflation being rather high.

Also, if they just didn't survey non-renters, then the result would not include how much homeowners spend on, say, hamburgers or whatever.



Hmmm, it looks like they just ask people what they think it would rent for and use that number:

"If someone were to rent your home today, how much do you think it would rent for monthly, unfurnished and without utilities?” [1]

So, I was wrong about this. I'm wondering how people might be biased, though? They could over- or under-estimate what their property would go for.

[1] https://www.bls.gov/cpi/factsheets/owners-equivalent-rent-an...




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