Is the easing of US inflation just an illusion? Some large expenditure items have been overlooked!

Is the easing of US inflation just an illusion? Some significantly rising and "unpriced" expenses are not included in the CPI! While price pressures in the US have eased significantly over the past two years, there is still a disconnect between inflation data and the actual financial situation of millions of Americans. Part of the reason is that current price levels are still higher than pre-pandemic levels, and another reason is that some major daily expenses that have risen significantly in recent years are excluded from key inflation indicators. Steve Reed, an economist at the US Bureau of Labor Statistics (BLS) responsible for the CPI index, stated that property taxes, tips, and interest are not included in the CPI. In addition, the CPI also misses a key aspect of homeowners insurance, as well as broker fees and "off-the-books" expenses paid to babysitters and dog walkers. "The CPI captures the goods and services you purchase, but some things that affect the cost of living are beyond this scope, so these things are actually unpriced." The Bureau of Labor Statistics also stated on its website: "The CPI does not necessarily reflect your personal price change experience, it reflects the price experience of millions of individuals, and rarely matches the experience of a specific consumer." As of September, US CPI has risen by 2.4% over the past year, the smallest increase since early 2021. Interest, property taxes, and homeowners insurance not included in CPI In 2022, the Federal Reserve began raising interest rates, leading to a surge in rates for mortgages, credit cards, auto loans, and student debt—many Americans spend a significant portion of their expenses on paying interest, but these interests are not included in the CPI. For example, about $628 billion of credit card debt in the US is in revolving or unpaid status each month, typically with interest rates around 22%. This means that while the goods or services purchased are included in the CPI, the millions of dollars in credit card interest payments are not. Additionally, since the Bureau of Labor Statistics considers home purchases as investment decisions rather than daily expenses, the accumulated annual costs of thousands of dollars per home such as property taxes and mortgage interest are not calculated in the CPI. The same goes for homeowners insurance, where the CPI only includes insurance for personal property inside the home, without considering the residence itself or the actual structure of the home. The insurance on the home itself, reflecting the home's value, is a more significant factor in determining the annual insurance cost for homeowners. Other expenses not included in the CPI Tipping: Restaurants impose mandatory tips for large gatherings, in which case the tip is included in the bill. However, apart from this scenario, any other tips are not included in the bill, and tipping is becoming more common, with consumers almost being compelled to tip. Many businesses use software that highlights suggested tip amounts at checkout, and these amounts are constantly increasing. Lottery purchases: The price of Mega Millions lottery tickets has increased from $2 in 2017 to $5 in 2025. This lottery is available in 45 states and the District of Columbia, but consumer spending on lottery tickets and sports betting is not included in the CPI Buying Marijuana: Marijuana has been legalized for medical and recreational use in many states in the United States, but the U.S. government lacks comprehensive national-level data to track marijuana prices. Paying Fines: Technological advancements have made it easier to capture illegal parking, speeding, and other violations, which may impose a significant burden on consumers, but these fines are not included in the CPI