Posted on 12/10/2021 9:41:52 AM PST by blam
“Headline % yoy similarly soared to 6.81% yoy from 6.22%—the highest since 1982.”
How can that possibly be true when gas and oil and meat are 100% higher in price this year over last year?
That 6.8% year-over-year inflation number seems incredibly low, compared to my real-world experience.
I agree something is fishy about the numbers.
The Consumer Price Index, which is the measure of inflation, is based upon a “market basket” of goods which can be changed at any time to suit the narrative. Actually inflation may be currently running closer to 18% by my estimation.
Yes and you must take into account horizontal substitution. Steak may go from $7 / lb to $15 / lb. But if you the consumer give up your $7/lb steak and start buying $3 /lb hot dogs that is deflationary not inflationary even if you did it because you had not choice after your daughters dental price for braces went up.
US used to use a cost of goods index which was based on the cost of a set basket of goods. Of course that makes the politicians look bad so it was changed.
Government inflation figures have been rigged for years. To put it in a nutshell, the Department of Labor’s market-basket-of-goods approach treats technological advances and improvements in manufacturing methods and worker productivity as deflationary — offsetting the monetary inflation taking place.
In 1981 the fed funds rates were 20% in the attempt to stem inflation. By 1982 they dropped to 9%.
Good post. To be fair, I would point out that the Dept. of Labor CPI estimate isn’t intended to be an accurate measure of overall inflation. It’s really aimed at measuring consumer prices in the context of their inflationary impact on wages in the U.S.
No. Hit the panic button. Waiting to fix the problem will only make the solution more painful. It won’t happen, but the solution is rather straightforward. Massively cut government spending. Massively cut taxes. Drastically increase tariffs on imports, particularly from China. Increase interest rates and cut the money supply. Open up state and federal lands for petroleum exploration. Eliminate about 90% of regulations affecting businesses. Drop all this climate change bullshit and burn baby burn. Burn coal. Burn natural gas. Burn the least expensive stuff out there. Jeez, burn Democrat cities to keep warm.
Correct. It was temporary. There are other levers to adjust to stamp out inflation, but tighten monetary policy has rather fast results. Interest rates should be increased now and by a decent amount, so they do not have to be increased to 20% in a couple years. That piece of schiff Carter allowed things to get out of control. We had to wait for Reagan and Volcker fix things. The wait was too long. Volcker wasn't around until late '79, if I recall. We can't wait for Powell to be replaced and for Trump in 2024 to start fixing these problems. We also need to rid the Treasury of that commie Yellen. She's eff'n clueless.
i know, don’t remember when they took the fuel/food out of the inflation equation.
These people making up these statistics don’t shop.
Indeed. For my normal daily shopping things are easily 50%-100% higher. I saw the new weight of some oats I was buying. The shrinkflation is now down to 13 ounce from the 14oz from the 16oz. A 6 pack of good beer is $12. Way to go Brandon!!!
If you didn’t buy steaks for July 4th and got a bag of generic hotdogs instead, you saved 16 cents... YAY BRANDON!!!
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