Asset inflation is what really ripping us off in recent years

Have you ever heard the term asset inflation?

Everyone knows inflation. In fact, many important numbers that are closely connected with our finance such as tax deduction are claimed to be adjusted by "the traditional inflation", which is CPI, consumer price index.

However, in recent years, asset inflation is taking a much bigger role than the traditional inflation in our personal finances. Housing prices skyrocketed so that we would have to take a huge debt in order to be able to afford a price to live. The majority of land are owned by the privileged, while the average people is concerning about bring sufficient food on the table. Therefore, by keeping the CPI low, the bare necessity such as food are are offered at a low price tag to keep the low income family alive so that there won't be social unrest. At the same time, with the raising asset price, mid income tier are sinking in the mud of debt. One little mistake and boom, here comes the bank notice of foreclosure. Following this thread, we can clearly see that cheap food and rent control is not helping the mid-low income tier, instead it opens up the possibility of driving asset price higher and higher.

Studies regarding including asset prices in the calculation of inflation goes way back to dot com bubble. Real as it is, considering the unequally distributed pricing is the nature of real estate, it is hard to really measure it in a national basis. A county basis inflation index would be more appropriate but less likely to be adopted. 

Although there's no such thing as absolute fairness, I think something has to be done to compensate people with less asset. Otherwise, as long as general capital rate of return is higher than the growth of economy, wealth is going to accumulate, which simply means the riches are getting richer.