Recent discussions about
the CPI have brushed over a key change that occurred in the
construction of the index in 1998. In its 13th Series the CPI became a
pure price index utilising an acquisitions approach, rather than a cost-of-living index utilising an outlays approach.
One feature of this change is that it removed land costs for
owner-occupiers – something which doesn’t appear to reflect reality and
provides some intriguing results.
...
Read the full article at MacroBusiness
thanks ... v interesting reading
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