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It is worth noting that while that's true, inflation as officially measured tends not to include things like housing costs - in the UK over the last 30 years or
by hkt 4y ago
It is worth noting that while that's true, inflation as officially measured tends not to include things like housing costs - in the UK over the last 30 years or so we've seen wages flatline while house prices and rents rose. In "real" inflation, people have been losing purchasing power for almost the entire period from the last financial crisis to now. CPIH addresses this in a limited way, but in general inflation is also different for each wage bracket - and highest for those who have least in the first place, even while official figures are "on target".
- jefftk 4y ago> inflation as officially measured tends not to include things like housing costs Really? In the US the standard CPI-U basket is 1/3 housing: https://www.bls.gov/news.release/cpi.t01.htm https://www.bls.gov/news.release/cpi.t01.htm It's the single largest component.
- hkt 4y agoTIL, that's an intriguing difference. Like I say, CPIH adjusts for this somewhat. It is a problem here because our 2% inflation target doesn't include housing. It also doesn't include the stock market etc, so we push inflation into these areas. Maybe I'm being too British in saying this, but it is a rare occasion when I see the US being more sensible than the UK. This is definitely one of those moments.