5 ms·

The three examples you cite, Education, Medicine and Housing are the three areas where prices have increased greatly in the last 20-30 years. There are very few

by slyall 5y ago

The three examples you cite, Education, Medicine and Housing are the three areas where prices have increased greatly in the last 20-30 years. There are very few others. Part of the problem with inflation calculation is giving the right weight to those.

skyde 5y ago
Well what % of your annual income are going to those. I agree luxury good should have a weight of 0 but Housing and Education is need by everyone and are a major part of where your salary go to.
gizmo686 5y ago
According to BLS data, drugs have had slower inflation than the CPI, averaging 1.59% since 2011: https://www.in2013dollars.com/Medicinal-drugs/price-inflation/2011-to-2021?amount=20 https://www.in2013dollars.com/Medicinal-drugs/price-inflatio... Insulin in particular has been a national contraversy around price increases, so I suspect its cost went up faster than the average drug. BLS claims that medical care overal inflated at an average of 2.74% annually since 2011, which is faster than CPI https://www.in2013dollars.com/Medical-care/price-inflation/2011-to-2021?amount=1000 https://www.in2013dollars.com/Medical-care/price-inflation/2... Education has been bad, at 10.84% https://www.in2013dollars.com/Education/price-inflation/2011-to-2021?amount=20 https://www.in2013dollars.com/Education/price-inflation/2011... Rent saw 3.21% https://www.in2013dollars.com/Rent-of-primary-residence/price-inflation/2011-to-2021?amount=1000 https://www.in2013dollars.com/Rent-of-primary-residence/pric...
anm89 5y ago
And consist of probably 80% of the fixed expenses of most people. So while the exact weight is up for debate, saying that inflation is incredibly high is a reasonable argument.
- jjk166 5y ago
  Inflation is about money supply. If the price of insulin is high because your money is worth less, that's inflation. If the price of insulin is high because a pharma executive is stepping on your neck, that's not inflation. How much you spend on services provided by poorly regulated monopolies is irrelevant.

by slyall 5y ago

skyde 5y ago

Well what % of your annual income are going to those. I agree luxury good should have a weight of 0 but Housing and Education is need by everyone and are a major part of where your salary go to.

gizmo686 5y ago

According to BLS data, drugs have had slower inflation than the CPI, averaging 1.59% since 2011: https://www.in2013dollars.com/Medicinal-drugs/price-inflation/2011-to-2021?amount=20 https://www.in2013dollars.com/Medicinal-drugs/price-inflatio... Insulin in particular has been a national contraversy around price increases, so I suspect its cost went up faster than the average drug. BLS claims that medical care overal inflated at an average of 2.74% annually since 2011, which is faster than CPI https://www.in2013dollars.com/Medical-care/price-inflation/2011-to-2021?amount=1000 https://www.in2013dollars.com/Medical-care/price-inflation/2... Education has been bad, at 10.84% https://www.in2013dollars.com/Education/price-inflation/2011-to-2021?amount=20 https://www.in2013dollars.com/Education/price-inflation/2011... Rent saw 3.21% https://www.in2013dollars.com/Rent-of-primary-residence/price-inflation/2011-to-2021?amount=1000 https://www.in2013dollars.com/Rent-of-primary-residence/pric...

anm89 5y ago

And consist of probably 80% of the fixed expenses of most people. So while the exact weight is up for debate, saying that inflation is incredibly high is a reasonable argument.

jjk166 5y ago
Inflation is about money supply. If the price of insulin is high because your money is worth less, that's inflation. If the price of insulin is high because a pharma executive is stepping on your neck, that's not inflation. How much you spend on services provided by poorly regulated monopolies is irrelevant.