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Is it fair to say CPI at 6% for 2021 means that not getting a nominal raise in 2022 implies a 6% paycut in real wage? I suspect most folks on this forum are qu
by claytonjy 5y ago
Is it fair to say CPI at 6% for 2021 means that not getting a nominal raise in 2022 implies a 6% paycut in real wage?
I suspect most folks on this forum are quite asset-heavy compared to the CPI basket of goods and are experiencing that 6% inflation on some fraction of their spending. A lot of money earned goes into investments well outpacing 6%, existing mortgages aren't increasing in monthly payments but the house is increasing in value, etc. The math varies tremendously across individuals, but I wouldn't be surprised if a 2% bump more than covers inflation as actually experienced by the average US software engineer.
- lotsofpulp 5y agoIt depends on your goals and expectations. If the things you want to purchase are being bid on by others gaining 30% per year of purchasing power, then if you are not, you have lost purchasing power relative to them. I like to use VOO as my measure of inflation, but that is only because of the things I am interested in purchasing, specifically the land I want, but also construction costs/tuition/vacations and family events/healthcare/legal services/political donations.
- pbhjpbhj 5y agoI'm not a developer. In UK house price inflation is about 12-15%. If you're saving for spending on housing then that's your benchmark for investments to beat. Reportedly, RPI [Retail Price Index] is ~4-5% IIRC. Government controlled pay was frozen for everyone except MPs, AFAICT. UK gov managed to hit the poorest with a NI increase too, but at least they reduced tax on champagne (yes, really).