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Depends on the degree and the duration. If the local slaughter house has to shut down because of Covid and steaks triple in price, does it really make sense to
by ashtonkem 5y ago
Depends on the degree and the duration. If the local slaughter house has to shut down because of Covid and steaks triple in price, does it really make sense to indicate that inflation is ~50% (number made up) over my basket of goods? Or does it make sense to acknowledge that I’ll shift over to chicken or no meat for a few weeks until prices return?
Similarly, if the price of beef permanently puts it out of reach for my family, then I absolutely would call foul on substituting it from my basket of goods. That would be inflation, and excluding beef would be gaming the system.
The problem is that determining between these cases is very hard to do in the moment, and only becomes obvious in hindsight.