A true cost-of-living index would reflect this value and its implication for the true rate of growth of the cost of living. The CPI does not reflect it, and accordingly fails to capture a significant offset to price rises in other products. Deriving an estimate of this value and building it into the CPI will not be an easy undertaking.
The creation of a new macro-prudential framework designed to ensure that monetary policy is not only shaped by systemic risk trends but also consistent with the expanded goals for product and asset stability is a major component of this pillar.