How does the CPI measure housing costs?

Economics Consumer Price Index Cpi Questions



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How does the CPI measure housing costs?

The CPI measures housing costs by tracking the changes in the prices of various housing-related items and services. This includes rental costs, homeownership costs such as mortgage interest payments, property taxes, and maintenance expenses, as well as the prices of housing-related goods like furniture and appliances. The CPI collects data on these items from surveys and uses them to calculate the average price changes over time, providing an indication of the overall housing cost inflation.