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Which makes sense because all other things in the CPI use oil to make and distribute goods. I've stopped paying attention to inflation numbers because they are
by snarf21 4y ago
Which makes sense because all other things in the CPI use oil to make and distribute goods. I've stopped paying attention to inflation numbers because they are all lies. The current CPI basket is complete nonsense. The numbers are built in such a way to always have low inflation unless oil prices go way up. Before this recent spike, inflation was "at historic lows and near zero". Really? Things aren't any more expensive in 2019 than then were in 2002? Nonsense.
- gus_massa 4y agoPerhaps I misunderstood your comment, but note that "at historic lows and near zero" means that the prices in 2022 are very similar to the prices in 2021, not that the prices went back to the old values in 2019.
- snarf21 4y agoOf course, but there are lots of years where the inflation number was almost zero and even one year where it was negative. My allegation is that the basket is nonsense. For example, public college tuition (one of the major expenses for families) went up 250% net from 2000 to 2020 where as the CPI was up 50% net over the same time period. I think healthcare, housing, college, transportation, etc. aren't weighted into the CPI appropriately.
- rmah 4y ago2% inflation a year over 17 years (2019-2002) is about a 40% overall increase in prices. Having lived through decades where inflation was 5% or 10%, it has indeed been very low for the past couple decades.