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To: Starboard

Those numbers are adjugated for CPI and are valid for CPI. So yes, we can argue that CPI does not reflect inflation felt by some people. We are all in different income brackets, different spending habits, different in percentage of debt carried compared to annual income, etc. So inflation will affect different people differently. In my own case, so far inflation has had minimal impact on my immediate family of 2 retired people. But we are not the average American family.


5 posted on 06/07/2022 11:59:50 AM PDT by entropy12 (Trump & MAGA are the only way to keep USA viable.)
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To: entropy12

I think most people know that the rate of inflation is understated by quite a bit. They see prices rising in everything they purchase. What’s really hurting is the surge in prices of necessities.

It is true that some people will feel the effects of inflation more than others. No disagreement there.

With respect to your particular situation, retirees tend not to spend as much as younger people do. And many no longer have mortgages to pay. That said, a lot of retirees depend on fixed incomes to live on. Even those fortunate enough to have pensions probably don’t get annual adjustments sufficient enough to keep pace with inflation like we are/will be experiencing. In the absence of rising income retirees will begin to feel the pinch and have to make lifestyle adjustments.

Inflation is always with us but a couple years of high, compounded inflation can significantly reduce your spending power. The solution is to have assets that can grow and produce rising income to try to keep even with the effects of inflation and taxes.


7 posted on 06/07/2022 12:51:57 PM PDT by Starboard
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