I previously detailed that CPI may overstate inflation for an individual who:
- does not own a home
- would like to own a home
- will likely soon buy a home
as it does not include how "affordable" housing has become with the recent price collapse for non-homeowners (full details here).
Interestingly, the Case Shiller Price Index (CSPI) has turned positive year over year with the spike in June's CPI offsetting further deterioration in the housing market, with the Composite 10 dropping over 17% year over year.