4 ms·

If the published inflation rate is significantly less than the increase in price of a wide variety of goods, then doesn’t that indicate that the inflation rate

by zakary 3y ago

If the published inflation rate is significantly less than the increase in price of a wide variety of goods, then doesn’t that indicate that the inflation rate isn’t being calculated correctly? My understanding is the inflation rate should generally reflect how much more expensive things are getting each year

ShadowBanThis01 3y ago
The ever-more-tiresome issue is that the textbook, accepted-by-rote relationship of interest rates to inflation hasn't held up. The Fed has raised, raised, raised rates for what, a couple of years now? To negligible effect. That's because nobody is calling the administration to task for allowing the REAL cause of recent spiraling costs: monopoly and oligopoly. This is straight-up corporate profiteering and price-gouging. It's infuriating to see the dereliction of the press's duty in its failure to demand answers, and to regurgitate embarrassing circular "logic" by saying "higher prices are driving inflation!" In other news: The heat is driving up temperatures around the world.
- jdsully 3y ago
  It’s just been one year and this has been one of the fastest raises in history. Give it some time to work.
  - ShadowBanThis01 3y ago
    When the four or so meat processors whine about a "labor shortage" and then report gargantuan profit increases, I'm not really keen on waiting any more. And meat is just one example. https://www.whitehouse.gov/briefing-room/blog/2021/12/10/recent-data-show-dominant-meat-processing-companies-are-taking-advantage-of-market-power-to-raise-prices-and-grow-profit-margins/#:~:text=According%20to%20these%20companies%27%20latest,income%20has%20surged%20by%20500%25 https://www.whitehouse.gov/briefing-room/blog/2021/12/10/rec....
jefftk 3y ago
It's typical that prices change by different amounts in different areas. For example, if you go to https://www.bls.gov/cpi/ https://www.bls.gov/cpi/ you'll see that the overall +3.2% for June is broken up into +4.9% for food, -12.5% for energy, and +4.7% for everything else. The more finely you slice, the more often you'll see something moving very differently from the rest of the economy.
killingtime74 3y ago
It's a weighted basket of goods and services meant to represent average consumer. Not everything in the basket has to increase at the same rate. https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/annual-weight-update-cpi-and-living-cost-indexes/latest-release https://www.abs.gov.au/statistics/economy/price-indexes-and-... Here is the latest quarter and each element's contribution https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/jun-quarter-2023 https://www.abs.gov.au/statistics/economy/price-indexes-and-...

by zakary 3y ago

ShadowBanThis01 3y ago

The ever-more-tiresome issue is that the textbook, accepted-by-rote relationship of interest rates to inflation hasn't held up. The Fed has raised, raised, raised rates for what, a couple of years now? To negligible effect. That's because nobody is calling the administration to task for allowing the REAL cause of recent spiraling costs: monopoly and oligopoly. This is straight-up corporate profiteering and price-gouging. It's infuriating to see the dereliction of the press's duty in its failure to demand answers, and to regurgitate embarrassing circular "logic" by saying "higher prices are driving inflation!" In other news: The heat is driving up temperatures around the world.

jdsully 3y ago
It’s just been one year and this has been one of the fastest raises in history. Give it some time to work.
- ShadowBanThis01 3y ago
  When the four or so meat processors whine about a "labor shortage" and then report gargantuan profit increases, I'm not really keen on waiting any more. And meat is just one example. https://www.whitehouse.gov/briefing-room/blog/2021/12/10/recent-data-show-dominant-meat-processing-companies-are-taking-advantage-of-market-power-to-raise-prices-and-grow-profit-margins/#:~:text=According%20to%20these%20companies%27%20latest,income%20has%20surged%20by%20500%25 https://www.whitehouse.gov/briefing-room/blog/2021/12/10/rec....

jefftk 3y ago

It's typical that prices change by different amounts in different areas. For example, if you go to https://www.bls.gov/cpi/ https://www.bls.gov/cpi/ you'll see that the overall +3.2% for June is broken up into +4.9% for food, -12.5% for energy, and +4.7% for everything else. The more finely you slice, the more often you'll see something moving very differently from the rest of the economy.

killingtime74 3y ago

It's a weighted basket of goods and services meant to represent average consumer. Not everything in the basket has to increase at the same rate. https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/annual-weight-update-cpi-and-living-cost-indexes/latest-release https://www.abs.gov.au/statistics/economy/price-indexes-and-... Here is the latest quarter and each element's contribution https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/jun-quarter-2023 https://www.abs.gov.au/statistics/economy/price-indexes-and-...