I’ll bet they factor in the drop in housing prices when calculating the Consumer Price Index. That keeps the reported inflation rate down while the price of everything except houses shoots up.
(Just think of all those retirees on Social Security anxiously waiting to jump on a good real estate deal! /sarc)
The CPI is just another “You lie!” instance from D.C.
They actually use rent. If they would have used house sales, the Fed might have put the brakes on the housing bubble a lot sooner.