The methodology underlying the Consumer Price Index (CPI), the Government’s measure of inflation, was altered in 1983 to exclude housing prices.  In an effort to demonstrate the impact of this exclusion, I have adjusted the CPI to include the cost of housing.  In doing so, I am using the pre-1983 methodology to produce an estimated measure of “Real Annual Cost Changes”.

For a more detailed understanding of the logic and method behind this adjustment please review The United States Continues to Experience Real Price Deflation.