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It'd be interesting to see what inflation is at if we try to correct for energy prices. Sure you can just subtract out the energy component of CPI, but that ig
by aeternum 4y ago
It'd be interesting to see what inflation is at if we try to correct for energy prices.
Sure you can just subtract out the energy component of CPI, but that ignores the energy costs that goes into every other good.
- Vecr 4y agoHow is that going to get you any closer to a solution though? Inflation ratchets, so even if you powered all the factories and ships and trucks with magic it's not going to people their real-term savings back.
- aeternum 4y agoIt would mean that when oil/energy prices go down, then prices of many goods should also drop, potentially erasing the inflation. A decent amount of energy production was taken offline when oil futures went negative. Then the war in Ukraine and resumption of travel means 3 factors pushing up energy prices all at once.
- willcipriano 4y agoInflation starting going up before the high energy prices started. My theory is inflation is causing high energy prices, not the other way around.