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The CPI is well thought out, though it's possible that their choices on weighting don't match your own spend. Some detail here: https://www.bls.gov/cpi/tables/
by tyingq 4y ago
The CPI is well thought out, though it's possible that their choices on weighting don't match your own spend.
Some detail here: https://www.bls.gov/cpi/tables/relative-importance/2021.htm https://www.bls.gov/cpi/tables/relative-importance/2021.htm
- imtringued 4y agoPeople don't seem to grasp that 9% inflation is extremely high across an economy as large as the US. The 70s had 15% inflation, everyone with their rage boner demanding 50% inflation in the CPI wants ridiculous reports of hyperinflation.
- tyingq 4y agoWell, and 9% YoY, where the previous year was also up ~7% from its own previous year. The magic of compound interest and all.
- Enginerrrd 4y agoYes! And a lot of people forget that, but I calculated it and the average spending increases I've been seeing in my household are up more like 15% YOY over the last 2 years. And that coincides with a significant reduction in consumption on our part as well as substitution for cheaper goods over that same period.
- themaninthedark 4y agoIf the CPI does not match people's spending habits, then it does not matter if it well thought out or not because it is a bad metric. Looking at the table, Energy(CPI-U 7.348%,CPI-W 9.029%) looks to be massively undervalued. Everything in our modern life, from food and clean water to our leisure activities require energy.