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Remember, CPI is just the average of a particular basket of goods weighted in a particular way - it doesn't necessarily represent the real levels of inflation p
by makomk 6y ago
Remember, CPI is just the average of a particular basket of goods weighted in a particular way - it doesn't necessarily represent the real levels of inflation people will see. I know for example that here in the UK, the low figures were the result of price increases in things people were actually buying like food, computers, cars, holiday stays when we weren't locked down, etc being counterbalanced by lower increases or even decreases in things they weren't buying as much anymore like clothes. (Our better news sources went out their way to explain this.) So the average person would have seen rather higher inflation than the CPI and RPI would suggest.
- gruez 6y ago>I know for example that here in the UK, the low figures were the result of price increases in things people were actually buying like food, computers, cars, holiday stays when we weren't locked down, etc being counterbalanced by lower increases or even decreases in things they weren't buying as much anymore like clothes. Source? Maybe uk is different but that claim isn't consistent with the CPI figures coming from the BLS. In your list of things food makes up the biggest part, and it's only up 3.5% YOY. Computers is actually down 3.2%. New cars/trucks is only up 1.5%. Used cars/trucks is up 9.4%, but that only makes up 2.71% of the basket. https://www.bls.gov/cpi/tables/supplemental-files/cpi-u-202103.xlsx https://www.bls.gov/cpi/tables/supplemental-files/cpi-u-2021...