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The CPI inflation metric certainly does exist, but the idea of inflation can apply to any basket of goods.
by corporate_shi11 7y ago
The CPI inflation metric certainly does exist, but the idea of inflation can apply to any basket of goods.
- bildung 7y agoBut is have to be consumables that are put into the basket. Inflation/deflation doesn't make sense otherwise. If an asset gains in nominal value, that means nominated in that asset, the consumables fell in price, i.e. we observe deflation. If the valuations of housing and stocks rise, this isn't inflation: If I owned them then I can sell these and buy more consumables than before, not less.