Household income is more than just wages. Household income can go up while wages remain stagnant or shrinking because other pieces of the pie are increasing (e.g. work benefits, investments, money from the government). https://fredblog.stlouisfed.org/2016/09/sources-of-household...
The price of housing can rise even faster than incomes.
Housing is only a part of the basket used to measure inflation. Housing's price rose faster than the weighted basket average, some other goods and services rose slower or even fell.
Many people don’t see housing inflation - if you bought a house in 2020 and house prices were up 80% since then it doesn’t affect your housing costs, especially in the US where mortgage rates are fixed for length of term even if interest rates sky rocket.
As long as accommodation isn't 100% of your basket of goods and services you use to measure inflation, accommodation can rise in price faster (or slower) than the basket. This ain't exactly rocket science.
Housing is not part of the inflation calculation. There IS a housing inflation crisis.
Household income is more than just wages. Household income can go up while wages remain stagnant or shrinking because other pieces of the pie are increasing (e.g. work benefits, investments, money from the government). https://fredblog.stlouisfed.org/2016/09/sources-of-household...
The price of housing can rise even faster than incomes.
Housing is only a part of the basket used to measure inflation. Housing's price rose faster than the weighted basket average, some other goods and services rose slower or even fell.
Accommodation costs are the first part of any sensible measure of inflation. If you're not factoring in housing then you're fudging the figures.
Many people don’t see housing inflation - if you bought a house in 2020 and house prices were up 80% since then it doesn’t affect your housing costs, especially in the US where mortgage rates are fixed for length of term even if interest rates sky rocket.
Yes? Who says otherwise?
As long as accommodation isn't 100% of your basket of goods and services you use to measure inflation, accommodation can rise in price faster (or slower) than the basket. This ain't exactly rocket science.
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Housing, schooling, healthcare, daycare, food.
Samsung TV purchasing power has skyrocketed, though, so there's that.
Inflation also corrodes your savings and investments.