| > equities The "C" in CPI stands from consumer, not assets. It is a measure of the cost of goods and services that people consume. Assets are not consumed so therefore not in the CPI. > Also look at shrinkflation Contrary to popular opinion, the people who calculate the CPI are not complete morons. See StatCan's (who do the CPI in Canada) handbook: > 7.10 Quantity adjustment entails accounting for changes in the quantity (e.g. package size, number of tissue ply, etc.) of observed POs. This is another implicit method of quality adjustment because it is assumed that the quality per standardized unit is the same over time. > 7.11 Quantity adjustment is the default treatment for nearly all of the POs in the food major aggregate as well as some of the products in the household operations, and personal care supplies and equipment aggregates. * https://www150.statcan.gc.ca/n1/pub/62-553-x/2019001/chap-7-... * https://www150.statcan.gc.ca/n1/en/pub/62-553-x/62-553-x2019... * https://www150.statcan.gc.ca/n1/en/catalogue/62-553-X The boffins are aware of shrinkflation (and good substitution, which is mentioned in (IIRC) Chapter 9). |