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Nobody's personal inflation will match anyone elses - if you drive 500 miles a week your inflation will be fair higher than if you ride a bike a couple of weeks
by iso1631 4y ago
Nobody's personal inflation will match anyone elses - if you drive 500 miles a week your inflation will be fair higher than if you ride a bike a couple of weeks.
"Substitution Bias" will change your personal basket and your weights, but it's reflection of real inflation.
The problem isn't CPI being too high. Or too low. It's that people don't understand what it's saying, or they argue with the weight of the baskets.
(EDIT: And of course even the inflation in a very specific good - like 1 pound of uncoocked prime grade beef, will itself vary depending on geographic location, doesn't mean the average is right or wrong, when they tried to find the average person in the US military they couldn't find him - not a single person met the average once you factored in just half a dozen measurements. It doesn't mean averages are meaningless though)