> Basket of goods doesn't include investment goods. Economists have some fancy schmancy reason for it (basically you get your money back when you sell), but I don't buy it.
The reason the basket of goods is focussed on consumer goods is because the price level of concern (where it is used, there are many other price indexes used for other purposes) is the cost of living, not cost of investing. Hence, the Consumer Price Index, the main inflation index monetary policy is concerned with. (There are also broad and industry-specific Producer Price Indexes, which are used for other purposes.)
The cost of investing wouldn't be measured by asset prices, but interest rates (inverted: low interest rates are a high cost of buying future money directly, which also drives up the cost of speculative instruments which may be redeemable for money in the future.) And, yes, the cost of investing is deliberately high currently, there is no secret or conspiracy about that. It's the overt policy.
> Price of housing (not included in the cpi)
Cost of housing is included in the CPI (both actual and imputed rent are part of the calculation.) It's a major component of the overall CPI. [0]
The reason the basket of goods is focussed on consumer goods is because the price level of concern (where it is used, there are many other price indexes used for other purposes) is the cost of living, not cost of investing. Hence, the Consumer Price Index, the main inflation index monetary policy is concerned with. (There are also broad and industry-specific Producer Price Indexes, which are used for other purposes.)
The cost of investing wouldn't be measured by asset prices, but interest rates (inverted: low interest rates are a high cost of buying future money directly, which also drives up the cost of speculative instruments which may be redeemable for money in the future.) And, yes, the cost of investing is deliberately high currently, there is no secret or conspiracy about that. It's the overt policy.
> Price of housing (not included in the cpi)
Cost of housing is included in the CPI (both actual and imputed rent are part of the calculation.) It's a major component of the overall CPI. [0]
[0] https://arbor.com/blog/how-does-rent-factor-into-the-consume....