"And how would you improve inflation measurement...?
The obvious solution is to break CPI into segments, and for central banks to use different policy options to address excessive price rises in specific sectors.
I think that we have seen that in Australia where RBA/APRA have imposed lending regulations on banks specifically targeting mortgage lending, to take the heat out of the property market. (Such things as increase LVRs and regulatory capital requirements.)
Interest rates is too blunt a policy instrument.
The segmenting of inflation makes the narrative around investing in gold as an inflation hedge more complicated. It may make sense to invest in gold to protect your spending power in the housing market, but not so to protect your future spending power on electronic goods where prices keep falling in real terms.
