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Please solve, thanks. __...._.. __ '... run.-. Assume you are a rational person trying to figure what the real inflation rate isr as opposed to

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Please solve, thanks.

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__...._.. __ '... run.-.\" Assume you are a rational person trying to figure what the real inflation rate isr as opposed to the officially-measured inflation rate. According to the officially measured rate. inflation over the past year has been recorded by the statistical authorities of some hypothetical government as 2 per cent. This rate is based on a CPE index in which the cost of owning a home is weighted at 40 per cent in the overall basket of what the typical household consumes on a regular basis. This cost includes mortgage payments, municipal taxes and home heating costs etc). CPI data tell us in this hypothetical example that the cost of owning a home did not rise during the pandemic {which means that the overall rate of 2 per cent inflation came from the rest of the CPI basket). At the same time. however, house prices increased by 25 per cent on average in your country of residence. If you were to include the cost of purchasing a. home caiculating the rate of inflation over the past year. what would be the inflation rate {rounding up to nearest full number]? What is the stated reason for exciuding house prices from the CPI calculation

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