The government calculates CPI numbers that include food and energy as well as the core rate which omits food and energy. Housing is included in both measures.
From the BLS website:
"The CPI represents all goods and services purchased for consumption by the reference population (U or W) BLS has classified all expenditure items into more than 200 categories, arranged into eight major groups. Major groups and examples of categories in each are as follows:"
"Also included within these major groups are various government-charged user fees, such as water and sewerage charges, auto registration fees, and vehicle tolls. In addition, the CPI includes taxes (such as sales and excise taxes) that are directly associated with the prices of specific goods and services. However, the CPI excludes taxes (such as income and Social Security taxes) not directly associated with the purchase of consumer goods and services."
It's probably a good idea to question the motivations and the information being disseminated by the doom and gloomers who want us to believe that our eyes are deceiving us and the worst economy since Hoover is just around the corner.
It's so easy for some to just say that inflation is high and real wages are lower, as well as just "say" that 2+2=5. I get tired of arguing that 2+2=4 but that's no excuse; we still have to restate the truth when others speak fantasy.
It's probably a good idea to question the motivations and the information being disseminated by the doom and gloomers who want us to believe that our eyes are deceiving us and the worst economy since Hoover is just around the corner.
I won't approach the point of saying that the economy is horrible, or even weak, though I'm not certain that it is flourishing as much as it could or should be. Anyway, I believe, based on my own purchasing power, that the CPI does understate things a bit. No, we're not in an 8% inflationary situation, but the 3.3% figure isn't accurate IMHO.
BTW, want to buy some gold? ;)