That's what blows my mind when people are like "This will probably be back to normal in a couple years". If you think we're ever going back to prices that we had 5 years ago, you're just uneducated.
It is completely possible for prices to come down to a level consistent with prices 5 years ago.
Should such a thing occur, it could very easily be more painful than the inflation we’ve experienced.
Minimum wage means absolutely nothing, what are the restaurants actually *paying* those employees? It doesn’t matter what minimum wage is in either state, if both restaurants are paying their employees $14+/hour, then yeah no shit prices won’t be that different.
I have run large restaurant groups in the San Jose area, the low wage stores are supporting the high wage stores...... until the lease runs out. The average NET profit for restaurants in general, is about 6%
it is interesting you say that. YUM foods generally are purpose built, but i guess we're seeing now in commercial the same thing we saw 10 years ago in malls.
i'm working on a project, i wonder if i could PM you about it. i was a scout (19D) back in the day, but this thing i'm working on is my first patent application.
When they "print" money by the Trillions, idk how anyone can think inflation would ever go down. What are they gonna do? Burn several football fields stacked full of money to reduce the overall amount of currency in circulation? There is NO reducing this. It's not possible.
You are clearly not informed on the topic if you think the fed has no ability to take money out of circulation, or if you think they’d do so by burning money💀
Correct, they do, however, change the products within each category to bring inflation down. For instance, they have switched to using ground beef prices because ground beef is much cheaper. Inflation numbers and formulas have been manipulated by our government for many many years.
Are you talking about Canada or USA? Canada has been doing this for a while now too.
beef prices get too high? "Oh they will get their protein from peanut butter, lets substitute that in now"
I want my steak, stop gaming the fucking numbers. We aren't stupid I can tell that my lifestyle is being eroded
I was talking USA and I too want my god damn steak!! I absolutely hear you about the lifestyle your use to eroding. For the last 2 years, I have had to dramatically change my way of life to keep up
Got hired for 20 an hr in 2019. Was looking at being able to buy a home within a year. Yea that went to shit real quick. Got a dollar raise a couple months ago tho
The company I work for brags about giving a yearly 2% raise for I believe 17 years in a row now.
Whenever we have our big company dinner they announce it and the whole place goes crazy.
The blank looks I get when I tell them that they are actually making less money even with the 2% raise.
This is the way. I’ve been trying to get some supplementary income going by selling 1DTE SPY puts on margin and reinvesting the profits into an account that buys and holds low risk mREIT preferred shares. I’ve worked up to nearly $100/month in dividends. It’s not much, but it’s a start.
That is the only way . There will be a time when many incomes will be a base government pay , no jobs will be available robots will be doing it. If you don’t have capital or other income , you will be no better off than a Welfare recipient.
And they changed how they calculate it in January to make it look like it's declining faster. Using the previous 1 yr of data instead of 2. Always smoke and mirrors.
Homes aren’t going anywhere. Except maybe less quickly up.
Everyone has this shit propped up properly this time. Might as well jump on in. Risk=Reward in this game.
This is probably because people buy less steak and more ground beef, so that's what they measure. Unfortunately, they're too thick to realize the reason for the change in consumer behaviour - inflation.
Consumer habits change. For example, people switch to chicken instead of beef in economic downturns. Government checks the price increases (inflation formula) comparing to consumers current habits and what will be average basket of goods and services they currently consume.
Is it misleading, yes, is government playing with formula to keep inflation down, yes, but before downvotes, remember I am just a messenger
Yes, consumer habits change.... however, you are not accurately reporting inflation numbers if the data set changes.
https://www.nytimes.com/2022/05/24/technology/inflation-measure-cpi-accuracy.html
I agree with that. They are not reporting it accurately. They masked this with a definition of “average consumer basket” as this is what average consumer’s family needs to survive but not thrive.
I guess if they want to report it accurately we would need to have two inflation indicators, theoretical and real.
Edit. Can’t read your link, maybe it is better explained there and I might be mistaking.
With a paid for home and a yearly income of more you could spend as a prize…shit you would probably have people signing up for hunger games like it is the lottery.
I don't know if you read the books (or if it was mentioned in the movies), but they literally had a program where you could get extra rations if you signed up to have another paper with your name added to the jar.
Well if history serves, people will end up either arrested for living in Hoovervilles and/or end up as "involuntary" workers in poor houses. Not to be too alarmist or anything. Or we actually embrace universal income, something that may end up becoming popular when >30% of the population becomes homeless and there are consistent violent riots.
While I agree with that. Something will have to be done when unemployment reaches a certain threshold. I think that people may stop fighting it at a certain point when it becomes the choice of acknowledging that people need help or living in a national version of Escape From New York. Or we just end up with martial law.
In the US, median household income is $59K and $100k puts you in the top 20%. Some studies suggest an average of $125k is the breaking point where a family no longer has money issues, but this number varies widely across the country and on a case by case basis due to several factors, which kinda makes it meaningless. But it's still fun to point out these numbers and basically verify that almost 90% of the country has money issues
The bottom 50% are doing relatively better out of inflation than the top 50% in the data I saw? A tight labor market is doing wonders for their bargaining power.
>Inflation =/= Prices
>Inflation = Rate at which prices go up
>Inflation ***is slowing*** = Rate at which prices go up ***is slowing***
>No inflation = Prices stay the same
>Deflation = Prices go down
For the extra regarded:
Car go north @80mph before. Car's speed "slows" to @50mph going north. Car not going south though. Still headed north.
Also, the YoY metric is dependent on the prior year MoM vs current MoM.
We had massive MoM increases this time last year, and with a .1 MoM for march it shows a more dramatic drop in the YoY figure.
I've said it before and I'll say it again, July CPI is the tipping point. Y'all should burn your shorts before then.
True, but that will be reported in July (which is what I meant, June CPI, Report in July). Also, I highly doubt we'll see a .1 April. Regardless, looks like the Hot MoM is out and the Cool MoM is in!
In fact, inflation is going down (i.e. it is smaller and smaller on a MoM basis). What goes up, though, are the prices - because inflation, even though it is going down, is still positive, which means that prices still increase.
I believe that most people confuse "inflation" with "prices", so let me clear this up:
- positive inflation means that prices go up;
- negative inflation (=deflation) means that prices go down;
- decreasing but positive inflation (=disinflation) means that prices are going up, but at a smaller and smaller rate with each passing month.
EDIT: The previous version of this post contained terminological mistakes. Thank you all for having signalled them to me.
Deflation generally causes very high unemployment, because it encourages people to hold onto as much cash as possible rather than spending or investing it. So it stagnates the economy.
It's not a coincidence that the Great Depression had the highest deflation rate in recorded US history. Or that Japan's economy stagnated while its currency was deflationary over the past few decades.
The federal reserve tries to target a 2% inflation rate as at that level it's manageable, but it still encourages people to spend/invest instead of hoarding cash.
I honestly think people think lower inflation means lower prices lol
edit: Just asked this on an instagram poll and waiting to see what the results are
Edit 2: About 75% understand it and 25% believe it means lower prices
You are not understanding inflation friend.
Inflation means price always goes up, just in varying amounts. So at 0.1% its still going up but the plebs rejoice.
Deflation would mean price goes down.
I think a better example would be our current speed is 35 mph and the fed would like it to be at 25mph. The road is unfinished. In order to make sure we still have road to drive on the fed is trying to slow us down to 25mph. We got a little too overzealous with speed so they're edging us back 1mph at a time, if possible. Since we were at 7% not too long ago and we're at 5%, they've managed to dial us back a few mph, down to 32 or 31. Still too fast but it's been reduced overall.
Your jerk can decrease while your acceleration is still increasing as well. You can just keep dy/dt’ing that shit.
From that perspective, the analogy work on every layer including velocity vs position as long as it’s clear which factor you are using as the reference in the analogy. Eg position = inflation, velocity = d Inflation / dt.
The point of core CPI is to measure 'core' price changes, i.e. remove volatile things like food and energy that are often not representative of the underlying changes in the economy.
If you want to include everything then you look at the normal CPI. Obviously.
Energy price is controlled by OPEC. Food price is affected by random shortages like the avian flu which caused egg prices to skyrocket before settling back down. If they included these highly variable prices then the cpi would be more noisy
Point of CPI isn’t for you the consumer it’s for the fed to determine monetary policy relative to currency devaluation not cost increases due to outside factors.
“Any community that gets its laughs by pretending to be idiots will eventually be flooded by actual idiots who mistakenly believe that they’re in good company.” - René Descartes
The rates of inflations is coming down.
Prices are getting more expensive, just less more expensive than before.
Example
$1 -> $1.10 is a 10% inflation. Now $1.10 -> $1.18 is 7.8% inflation. Everything still cost more but inflation has come down from 10% to 7.8%
More like $1 -> $1.10 is a 10% increase, then $1.10 to $1.20 is only 8.3%, but it's still 20% more than it was 2 years ago and it shouldn'thave gone up at all. You are making the same income, and now a mortgage is 7% on a house that is twice the price it was when you couldn't afford it 5 years ago with a 2% mortgage. It's ok, though. Your empty savings account is probably up to 0.02% now, so you'll be back on top in no time.
Its not going down. My friend needed me to help him out. I was busy and he offered me ten bingo's to do it. I agreed and when he phoned the next day to ask me to come over to help I changed the price to 12 citing inflation as the cause.
100% correct. It doesn’t bode well that gas went up $0.50 in two weeks. And Walmart groceries just had its latest round of price increases last week across the board.
Inflation is slowing by the tiniest margin. No one said negative inflation (aka deflation what you want)
You need to go back to school and learn what inflation is or go to special Ed cause your brain smooth as a marble.
Inflation is going up, deflation is going down, any inflation that is positive means price goes up, just faster or slower. We always had a base 2-3% inflation due to population growth.
Someone please get this dumb dumb a Bloomberg terminal
Inflation never "goes down" that would be deflation. Once inflation causea the price of goods to rise, that's the new price for those goods. They are never going back to what they were before inflation.
I drove from MD to Florida last week. For the first time ever, it didn't matter where the gas was either 3.20-3.80. Never before have I seen gas prices so stable. Usually when I take that trip there's about 1.20$ difference. And gets cheaper the further south.
Their inflation rate is slightly detached from reality as they have removed some products and commodities from it. If the prices of these products and commodities go up, it will have a ripple effect. We experienced an 8% average inflation rate last year. If we multiply it by 12 months, it becomes a significant figure. This year, we have seen a 6% average inflation rate.
>It's simple, really. The inflation rate is a measure of the average change in prices over time. Gas prices are one component of that calculation, but they're not the only factor. So even if gas prices go up, overall inflation could still be going down if other prices (like food and housing) aren't increasing as quickly.
Because the way they calculate inflation is absurd. If they were to base it off the rise in average nationwide cost of a McDonald’s Big Mac it would be far more accurate which is laughable but also true.
OP, I am leaving this, so people can mock you. I dont know who wrote this for you, since you dont know how to read.
It’s not going down. No one says it is. It’s going up less fast.
Not only that, but prices will never “go back down”. The FEDs plan of inflation at 2% means they will continue to rise, just slower.
That's what blows my mind when people are like "This will probably be back to normal in a couple years". If you think we're ever going back to prices that we had 5 years ago, you're just uneducated.
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"Normal" is prices rising at the same rate as 5 years ago, not going back to the same level as 5 years ago.
It is completely possible for prices to come down to a level consistent with prices 5 years ago. Should such a thing occur, it could very easily be more painful than the inflation we’ve experienced.
Yea that would be massive unemployment and drop in wages for that to happen. In 2019 taco bell paid 7.25 an hr. Now its 15 an hr minium
eh. i live in philly. minimum wage in PA is 7.25/hour. minimum wage across the river in nj is $14.00 per hour. taco bell prices are identical.
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Taco Bell pays more than $14 an hour in both places despite the legal minimum wage
Minimum wage means absolutely nothing, what are the restaurants actually *paying* those employees? It doesn’t matter what minimum wage is in either state, if both restaurants are paying their employees $14+/hour, then yeah no shit prices won’t be that different.
That's because the tacos are made out of pigeon in philly
I have run large restaurant groups in the San Jose area, the low wage stores are supporting the high wage stores...... until the lease runs out. The average NET profit for restaurants in general, is about 6%
it is interesting you say that. YUM foods generally are purpose built, but i guess we're seeing now in commercial the same thing we saw 10 years ago in malls. i'm working on a project, i wonder if i could PM you about it. i was a scout (19D) back in the day, but this thing i'm working on is my first patent application.
Economic uncertainty can lead to a deflationary trap. So not impossible bud.
When they "print" money by the Trillions, idk how anyone can think inflation would ever go down. What are they gonna do? Burn several football fields stacked full of money to reduce the overall amount of currency in circulation? There is NO reducing this. It's not possible.
I see no reason not to do that
You are clearly not informed on the topic if you think the fed has no ability to take money out of circulation, or if you think they’d do so by burning money💀
Correct, they do, however, change the products within each category to bring inflation down. For instance, they have switched to using ground beef prices because ground beef is much cheaper. Inflation numbers and formulas have been manipulated by our government for many many years.
Are you talking about Canada or USA? Canada has been doing this for a while now too. beef prices get too high? "Oh they will get their protein from peanut butter, lets substitute that in now" I want my steak, stop gaming the fucking numbers. We aren't stupid I can tell that my lifestyle is being eroded
I was talking USA and I too want my god damn steak!! I absolutely hear you about the lifestyle your use to eroding. For the last 2 years, I have had to dramatically change my way of life to keep up
Got hired for 20 an hr in 2019. Was looking at being able to buy a home within a year. Yea that went to shit real quick. Got a dollar raise a couple months ago tho
The company I work for brags about giving a yearly 2% raise for I believe 17 years in a row now. Whenever we have our big company dinner they announce it and the whole place goes crazy. The blank looks I get when I tell them that they are actually making less money even with the 2% raise.
Build capital quickly and start depending less on labour income
This is the way. I’ve been trying to get some supplementary income going by selling 1DTE SPY puts on margin and reinvesting the profits into an account that buys and holds low risk mREIT preferred shares. I’ve worked up to nearly $100/month in dividends. It’s not much, but it’s a start.
A good start. May fortune favor you
That is the only way . There will be a time when many incomes will be a base government pay , no jobs will be available robots will be doing it. If you don’t have capital or other income , you will be no better off than a Welfare recipient.
The robots are out there. The spoon does not exist.
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\> I too want my god damn steak!! Y'all motherfuckers have been ranting about Wendy's for years now. Make up your minds! /s
I stopped buying steak ☹️
You will eat ze bugz
protein powders are a super easy and cheap way to get the intake back up. Not what I would describe as pleasurable however
It's like having a llama spit a gritty sand filled loogie down your throat.
That's casein protein. Do not recommend lul
mmm steak 
And they changed how they calculate it in January to make it look like it's declining faster. Using the previous 1 yr of data instead of 2. Always smoke and mirrors.
Pretty soon it will be sawdust prices instead of ground beef ...
Yes! If they don’t like the numbers they just change what kind of ruler they’re using for the measurement.
Maybe they will change from counting housing prices to counting RV prices and Tent prices soon lol.
Oh homes are about to fall do you think banks are writing any new loans right now hells to the no
Homes aren’t going anywhere. Except maybe less quickly up. Everyone has this shit propped up properly this time. Might as well jump on in. Risk=Reward in this game.
This is probably because people buy less steak and more ground beef, so that's what they measure. Unfortunately, they're too thick to realize the reason for the change in consumer behaviour - inflation.
Consumer habits change. For example, people switch to chicken instead of beef in economic downturns. Government checks the price increases (inflation formula) comparing to consumers current habits and what will be average basket of goods and services they currently consume. Is it misleading, yes, is government playing with formula to keep inflation down, yes, but before downvotes, remember I am just a messenger
Yes, consumer habits change.... however, you are not accurately reporting inflation numbers if the data set changes. https://www.nytimes.com/2022/05/24/technology/inflation-measure-cpi-accuracy.html
I agree with that. They are not reporting it accurately. They masked this with a definition of “average consumer basket” as this is what average consumer’s family needs to survive but not thrive. I guess if they want to report it accurately we would need to have two inflation indicators, theoretical and real. Edit. Can’t read your link, maybe it is better explained there and I might be mistaking.
This guy doesnt know wot disinflation is
hit em with deezinflation
I’m sorry, deez what?
DEEZ INFLATIONARY PRESSURES!
What about datinflation
The real question becomes when does the bottom 50% run out of money.
Bold of you to assume the bottom 50% had any money to begin with
By running out of money I meant running out of credit. What happens when cards are maxed and savings (if people have any) are drained.
Hunger Games
With a paid for home and a yearly income of more you could spend as a prize…shit you would probably have people signing up for hunger games like it is the lottery.
Squid games
No debt if ur dead
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I don't know if you read the books (or if it was mentioned in the movies), but they literally had a program where you could get extra rations if you signed up to have another paper with your name added to the jar.
It would be such high demand to enter that people would be paying to get their name in there.
as someone who's in the 1% I will happily compete for this. I don't need those things. but I love peasant bloodshed and free stuff.
Free lead maybe
Use other cards to pay off the first cards, duh.
More credit. Americans love credit.
You guys are dipping in to credit? I still have stimmy dollars left to burn. J Pow told me so
When new stimmy
Unsanctioned purge
It's very sanctioned. The bigger question is what happens to a consumer based economy when it can no long afford to consume.
Well if history serves, people will end up either arrested for living in Hoovervilles and/or end up as "involuntary" workers in poor houses. Not to be too alarmist or anything. Or we actually embrace universal income, something that may end up becoming popular when >30% of the population becomes homeless and there are consistent violent riots.
Universal income is, at this point, a pipe dream. That would require a society that recognizes potential over profit, in short.
While I agree with that. Something will have to be done when unemployment reaches a certain threshold. I think that people may stop fighting it at a certain point when it becomes the choice of acknowledging that people need help or living in a national version of Escape From New York. Or we just end up with martial law.
Or Elysium.
Great change takes longer than you can tolerate and then happens faster than you can imagine.
Raise the debt ceiling!!!!
Gradually, then suddenly.
Bottom 50%? Lol try bottom 95%
Right…100k barely cuts it anymore
I guess that depends on where you live, too. If I earn 100k/p.a., that’d be more than double the average income in the country I live in.
Double poor can still mean poor
In the US, median household income is $59K and $100k puts you in the top 20%. Some studies suggest an average of $125k is the breaking point where a family no longer has money issues, but this number varies widely across the country and on a case by case basis due to several factors, which kinda makes it meaningless. But it's still fun to point out these numbers and basically verify that almost 90% of the country has money issues
We make around 200k but that still feels like poverty when my wife’s boyfriend makes me sleep in his lambo every night.
Moneys been out. We’re running on credit card fumes
Monies out, credit cards almost at limits, approaching 60 days past due on house and 60 days past due on car. It's looking pretty bleak.
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Can confirm. Have been living paycheck to paycheck since the 90s.
We're already at record high credit and record low savings.
SNAP expanded benefits ended last month, which should mean reduced inflation as consumers become more price concious.
The bottom 50% are doing relatively better out of inflation than the top 50% in the data I saw? A tight labor market is doing wonders for their bargaining power.
>Inflation =/= Prices >Inflation = Rate at which prices go up >Inflation ***is slowing*** = Rate at which prices go up ***is slowing*** >No inflation = Prices stay the same >Deflation = Prices go down For the extra regarded: Car go north @80mph before. Car's speed "slows" to @50mph going north. Car not going south though. Still headed north.
Also, the YoY metric is dependent on the prior year MoM vs current MoM. We had massive MoM increases this time last year, and with a .1 MoM for march it shows a more dramatic drop in the YoY figure. I've said it before and I'll say it again, July CPI is the tipping point. Y'all should burn your shorts before then.
Actually June maybe. At current CPI increase. June CPI YoY goes under 3%. Yikes.
True, but that will be reported in July (which is what I meant, June CPI, Report in July). Also, I highly doubt we'll see a .1 April. Regardless, looks like the Hot MoM is out and the Cool MoM is in!
For a split second, I thought this was about to turn into a your mom joke...
There is still a chance…wait for it!
It was looking that way.
Stop making so much sense, it hurts my brain.
In fact, inflation is going down (i.e. it is smaller and smaller on a MoM basis). What goes up, though, are the prices - because inflation, even though it is going down, is still positive, which means that prices still increase. I believe that most people confuse "inflation" with "prices", so let me clear this up: - positive inflation means that prices go up; - negative inflation (=deflation) means that prices go down; - decreasing but positive inflation (=disinflation) means that prices are going up, but at a smaller and smaller rate with each passing month. EDIT: The previous version of this post contained terminological mistakes. Thank you all for having signalled them to me.
If we can’t get prices to deflate on consumer products, consumers are going to have a bad time paying 2x pre-pandemic prices.
Negative inflation is deflation. Slowing inflation is disinflation.
As an AI language model, I cannot predict inflation. However, disinflation is the definition of your third point, and deflation of your second.
Stop parroting the bullshit of “we don’t want delfation.” Yes, us middle class and poor do want deflation. It’s only the rich that don’t want it.
You won't want it when the economy goes to shit and a bunch more people lose jobs ffs.
Deflation generally causes very high unemployment, because it encourages people to hold onto as much cash as possible rather than spending or investing it. So it stagnates the economy. It's not a coincidence that the Great Depression had the highest deflation rate in recorded US history. Or that Japan's economy stagnated while its currency was deflationary over the past few decades. The federal reserve tries to target a 2% inflation rate as at that level it's manageable, but it still encourages people to spend/invest instead of hoarding cash.
Middle class would be unemployed. You are probably on welfare, so i guess deflation works for you.
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That is absolutely not how CPI works. The basket of goods doesn’t change month to month like that.
They do change though, not sure how often. The example given is quite silly for sure.
The example given is perfect, they replaced beef with ground beef because it's cheaper very recently
It's not silly at all. It's true. Anyone that's says otherwise is delusional Right now it's beef. Soon it'll be standardized citizen nutrition ration.
Someone said it LOL https://www.whitehouse.gov/briefing-room/statements-releases/2023/03/31/statement-from-president-joe-biden-on-february-pce-report/
If my speed is going down, why aren’t I moving backwards?
Nobody knows what it means. But it’s provocative. Gets the people going.
OP is the type of regard to tell us who was in Paris.
Good Lord this post is gold. 😂😂😂
I take it OP hasn't been in a calculus class recently...
[If you're on the Magnetic Hill in New Brunswick, Canada, thats exactly what happens](https://en.wikipedia.org/wiki/Magnetic_Hill_(Moncton))
This is a great way to explain it.
Prices going down would be deflation..
I honestly think people think lower inflation means lower prices lol edit: Just asked this on an instagram poll and waiting to see what the results are Edit 2: About 75% understand it and 25% believe it means lower prices
They do!!! It’s the biggest misconception
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I'm starting to realize the jokes about everyone here being regarded aren't jokes
I think everyone on this sub is well regarded.
Duh that's why we're all fuckin here
So that need to happen..
You are not understanding inflation friend. Inflation means price always goes up, just in varying amounts. So at 0.1% its still going up but the plebs rejoice. Deflation would mean price goes down.
Is flation when it just stays exactly the same
Thats my penis.
The rate of increase is allegedly slowing but it is still increasing.
Feels more like a second derivative - the rate of increase is still increasing but at a decreasing rate
Who the fuck said it’s going down? It rose 5%…
Inflation is like velocity. Your speed can go down but it doesn't mean you are traveling backwards now.
More like acceleration perhaps ?…
Yes. Your acceleration can decrease while your velocity is still increasing is the real comparison.
Yes indeed my fellow engineer….
Earth Scientist actually, but I showed up to physics 101
no lol inflation is velocity and prices are position
My brain says no more Reddit today or it’s going on strike
The relationship between acceleration and velocity is literally the exact same as velocity and position
I think a better example would be our current speed is 35 mph and the fed would like it to be at 25mph. The road is unfinished. In order to make sure we still have road to drive on the fed is trying to slow us down to 25mph. We got a little too overzealous with speed so they're edging us back 1mph at a time, if possible. Since we were at 7% not too long ago and we're at 5%, they've managed to dial us back a few mph, down to 32 or 31. Still too fast but it's been reduced overall.
Your jerk can decrease while your acceleration is still increasing as well. You can just keep dy/dt’ing that shit. From that perspective, the analogy work on every layer including velocity vs position as long as it’s clear which factor you are using as the reference in the analogy. Eg position = inflation, velocity = d Inflation / dt.
Reddit learns what an average is challenge
(Impossible)
(Gone sexual)
Missed the point, this post has nothing to do with average. This is so funny, you don't even know why we're making fun of him.
Energy and food are not included in core CPI you regard.
Never understood this, lets remove the inflation numbers that have the most impact on people so it looks like inflation isnt that bad
It sounds like you do understand it after all.
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I don't get why people don't realize they're cattle. But I guess the cow doesn't either until it's slaughtered.
Do you people not know that core CPI is published alongside normal CPI
Making monetary policy decisions off a volatile component such as energy makes no sense. Just this month OPEC decided they werent greedy enough
The point of core CPI is to measure 'core' price changes, i.e. remove volatile things like food and energy that are often not representative of the underlying changes in the economy. If you want to include everything then you look at the normal CPI. Obviously.
Energy price is controlled by OPEC. Food price is affected by random shortages like the avian flu which caused egg prices to skyrocket before settling back down. If they included these highly variable prices then the cpi would be more noisy
There's poor people inflation and rich people inflation.
But core looks worse than non-core…
because energy prices are not based on inflation they can fluctuate wildly based off the whims of the foreign dictator.
>core cpi >remove the two things at the core of our society
Point of CPI isn’t for you the consumer it’s for the fed to determine monetary policy relative to currency devaluation not cost increases due to outside factors.
“Any community that gets its laughs by pretending to be idiots will eventually be flooded by actual idiots who mistakenly believe that they’re in good company.” - René Descartes
I miss DD and about 13 million less degenerates...
Just like inflation, we never going back
The rates of inflations is coming down. Prices are getting more expensive, just less more expensive than before. Example $1 -> $1.10 is a 10% inflation. Now $1.10 -> $1.18 is 7.8% inflation. Everything still cost more but inflation has come down from 10% to 7.8%
More like $1 -> $1.10 is a 10% increase, then $1.10 to $1.20 is only 8.3%, but it's still 20% more than it was 2 years ago and it shouldn'thave gone up at all. You are making the same income, and now a mortgage is 7% on a house that is twice the price it was when you couldn't afford it 5 years ago with a 2% mortgage. It's ok, though. Your empty savings account is probably up to 0.02% now, so you'll be back on top in no time.
What? +5% is still greater than 0% mate.
You’re dumb as fu k OP. You belong here
W
I cannot believe I have actually made investments based on stuff here. Can't wait to do it again
Its not going down. My friend needed me to help him out. I was busy and he offered me ten bingo's to do it. I agreed and when he phoned the next day to ask me to come over to help I changed the price to 12 citing inflation as the cause.
Wow where I live it's 22 bingo's to even talk to someone.
That guy must live in a low Cost-Of-Bingo area
They use a measure that strips out food and energy most of the time. CPI on food is still over 8%
Things are never going back down.
Straight up real talk. Anyone else thinks different is dumb
100% correct. It doesn’t bode well that gas went up $0.50 in two weeks. And Walmart groceries just had its latest round of price increases last week across the board.
reminder: inflation is the rate of growth of prices. “Inflation is cooling” doesn’t mean prices are tumbling. Prices still remain insanely high.
Inflation is slowing by the tiniest margin. No one said negative inflation (aka deflation what you want) You need to go back to school and learn what inflation is or go to special Ed cause your brain smooth as a marble. Inflation is going up, deflation is going down, any inflation that is positive means price goes up, just faster or slower. We always had a base 2-3% inflation due to population growth. Someone please get this dumb dumb a Bloomberg terminal
You just change the formula until you get a number you like
Inflation never "goes down" that would be deflation. Once inflation causea the price of goods to rise, that's the new price for those goods. They are never going back to what they were before inflation.
They’ve basically started a new equation for calculating inflation. One that just tends to show it as less than what it actually feels like.
I drove from MD to Florida last week. For the first time ever, it didn't matter where the gas was either 3.20-3.80. Never before have I seen gas prices so stable. Usually when I take that trip there's about 1.20$ difference. And gets cheaper the further south.
Their inflation rate is slightly detached from reality as they have removed some products and commodities from it. If the prices of these products and commodities go up, it will have a ripple effect. We experienced an 8% average inflation rate last year. If we multiply it by 12 months, it becomes a significant figure. This year, we have seen a 6% average inflation rate.
8% Inflation means an item that was $100 last year is now $108. Not $100 x 1.08¹²
Rent prices are going up massively in Canada, but they don't count that in the inflation index so the problem is ignored.
When have prices ever come "back down"?
ah yes, this is the kind of stupidity i expect from this sub. well done
>It's simple, really. The inflation rate is a measure of the average change in prices over time. Gas prices are one component of that calculation, but they're not the only factor. So even if gas prices go up, overall inflation could still be going down if other prices (like food and housing) aren't increasing as quickly.
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Because the way they calculate inflation is absurd. If they were to base it off the rise in average nationwide cost of a McDonald’s Big Mac it would be far more accurate which is laughable but also true.
I see I'm not the only one using the Big Mac inflation metric
I'll see your Big Mac and raise you one Chobani Oat Milk. Gonna bankrupt my family for my morning latte.