Housing price not measured in CPI

The consumer price index or CPI is a main gauge of inflation. There're suggestions in China, housing prices should also be measured when calculating the CPI.

The spokesman of the National Bureau of Statistics Sheng Laiyun says it's an international practice not to involve housing prices. He says there is a subindex in the CPI which reflects the housing price movement. And with the government seizing more information from housing renting market, rent can be also included in the index which reflects housing price movement.

Sheng said, "Spending on housing purchases is directly reflected in the investment sector. It's an International practice. Prices in the residential sector includes price movement in building materials and property management fees. We also take into consideration property depreciation."