A better CPI
A victory for common sense. That is what the announcement on the revision of the Consumer Price Index means. For years now, many political leaders, economists, and newspapers (including this one) have pointed out that the present housing component of the CPI overstates the inflation rate in periods of high interest rates. Now, by linking the housing component to some sort of rental equivalent, the end result should be somewhat lower measurements of the rate of inflation and, consquently, more realistic federal outlays to millions of Americans whose benefits or wages are linked to the CPI. That in itself will be anti-inflationary.
The actual changes will be worked out over the next year and will not take effect until 1983. But cheers are in order today.