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Neither of those represent inflation in consumer prices particularly well. The price of a new washing machine (amortised maybe, I don't know), a litre of milk,

by ploika 6y ago

Neither of those represent inflation in consumer prices particularly well. The price of a new washing machine (amortised maybe, I don't know), a litre of milk, a pair of jeans, a monthly phone/broadband bill or a tank of petrol would be more useful in tracking inflation. Gold, copper, pork bellies, shipping, storage costs etc would be tracked in something like the Purchasing Managers Index. Share prices are pretty much irrelevant since buying shares isn't really consumption.

lotsofpulp 6y ago
> The price of a new washing machine (amortised maybe, I don't know), a litre of milk, a pair of jeans, a monthly phone/broadband bill or a tank of petrol would be more useful in tracking inflation. That’s pocket change compared to the change in price for real estate, healthcare, education, childcare, taxes, and savings (assets for retirement and emergencies). At least for where I want to live. If I made a budget 15 years ago of my purchases in the next 15 years, the total price for the total of those purchases increased at far more than US government CPI figures. I get more bang for buck for my TV, but that’s offset by the extra few hundred thousand dollars for land, healthcare, etc.
- ploika 6y ago
  Of course. Depending on where you live, most of what you mentioned is probably included in the CPI calculation. Rent, health insurance, education and childcare are all included in Ireland's CPI in some form, for example. I was trying to differentiate between increases in consumer prices (like the cost of a watch or running a car) and increases in cost/value of other stuff (like gold bullion or Tesla shares or whatever).