0.8% x 12 months = 9.6% Annualized Run Rate Inflation.
Folks, we are at 10%.
The wealthy celebrate this Inflation on their assets increasing their riches. Elizabeth Warren is salivating at the prospect of the massive taxes the government could collect due to the larger numbers all around.
Inflation is a moral problem is something for nothing. A form of theft. A form of unlegislated tax. -Jim Grant
Folks, we are at 10%.
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By some measures (which are no longer used because they are too representative of reality) inflation is much higher than than that.
For personal planning purposes, assume its about 15%. That’s the kind of damage it is doing to your income.
And going up.
Folks, we are at 10%.
As an AEI economist wrote recently:
Insanity.
"...In April 2020, narrow money stock M1 [cash and checking accounts, CDB] was $4.77 trillion. In April 2021, it was $18.9 trillion, nearly a 300 percent increase. Six months after that, we have inflation pressure — who’d have guessed?..."
Some food items are up over 50% at Walmart in the last year.
In fairness, you’re extrapolating one month and you then presume that it will be true for all 12 months.
Inflation is very bad, very high, but there’s no need to extrapolate because you’re mixing apples and oranges.
You presume, via extrapolation, that one month equals the actual performance of 12 months. And then rounding up to say it’s 10% compounds the error.
The correct way to calculate this is the simple BLS calc.
In this case, how much higher was November 2021 vs. Nov. 2020 — that’s how you get an accurate picture of what inflation is: 6.8% annualized. Which is horrifically high.
Please understand what I’m saying: 6.8% is outrageous and crippling to pocketbooks by any standard.