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WEKU
WEKU
Scott Horsley

Here's a big reason why people may be gloomy about the economy: the cost of money

A home available for sale is shown in Austin, Texas, on Oct. 16, 2023. Former Treasury Secretary Larry Summers argues the consumer price index may understate the pain of rising interest rates, such as higher mortgages. (Brandon Bell/Getty Images)

The government's best-known measure for the cost of living tracks the price of hundreds of goods and services every month, but one important expense is not included in the consumer price index: the cost of money itself.

As a result, the inflation measure may understate the pain that many Americans feel when rising interest rates make it more expensive to buy a house, get a car loan or carry a balance on their credit card.

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