Quote:
Originally Posted by Rainger99
The question was whether any of the various CPIs use insurance increases to determine the rate of inflation. In the past few years, insurance has increased much faster than most other items.
Car insurance went up 26% from 2023 to 2024. If the CPI doesn’t use insurance as one factor to determine inflation, the figures are not accurate.
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Yes it does, however, it's an imputed number for the calculation, which makes the imputed number calculation suspect. Imputed number means that it's not a survey number like those for the costs of goods.. . Insurance is a service, and is calculated with the service CPI versus the goods CPI.
The goods CPI is much easier to get data and calculate. Service inflation is much harder, and given the slow method changes by the federal data collectors, they have resorted in history to an imputed number based upon financial results of insurance carriers. Therefore it's a blend of health, auto and life at the aggregate level.
They also changed some methodology at the beginning of the year for parts of the insurance component, and they just effed it up even more. . same with the cost of rental imputed from the cost of house sales. That being said, it's a blend for a national average, which means that FL is offset by much lower increases in other states. So FL is higher than the rest of the country for its third world characteristics. .
I hope this answer the question more than just yes/no