One problem with CPI as an index of cost of living faced by

One problem with CPI as an index of cost of living faced by U.S. households is that it does not include the values of imported goods consumed by the U.S. households.

Solution

Yes it is true. CPI deals with all the goods and services which are bought for consumption purposes by households.

It is calculated by list of representative items over a period of time . The imported goods are not considered. CPI only includes products which are utilized by the individual personally.