If you tie rent increases to the prices of other goods it still results in suppressed returns on development. If there's a housing shortage and rental prices rise faster than energy, food, etc. then people will be paying less than market rate (read: suppressed returns on development). Like in San Francisco: AFAIK food, energy, and other staples did not rise significantly faster than other areas. But housing shortages led to significant rent increases.

The only way rent control doesn't suppress returns on development is if the maximum rent increases are higher than what the rental increases would be absent rent control.