Headline PCE inflation showed an increase of 3.3 percent year-over-year and Core PCE inflation — excluding volatile food and energy prices — increased 4.2 percent in the last year.
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I believe the above statement is untrue and I believe it is by design and intentional which makes it a lie.
My best yardstick on inflation is my breakfast. I eat at the same restaurant several times a week. Breakfast 3 years ago was about $12.00. It is now about $17.00. That’s over 40% HIGHER.
I just thank God I moved when I did and got a 2.78% loan.
The CPI methodology is pretty good. It’s public.
They survey a lot of people and ask, in effect, what % of each month’s expenditures are various categories. These %s are all averaged together.
Then they send staff out to get a measurement of the prices of those categories.
Blend the two items together and you can quote inflation.
If you can think of a better way, they open their process up periodically for suggested improvements and then do internal evaluation. They HAVE made changes over the years.
The Fed’s target is 2%. Peak inflation in the past couple of years was about 8%. It is now 4%. That is a reduction. The Fed is quietly doing QT, which is rather more important than tightening rates. But there have been occasions when they stopped. And when they did, inflation resumed.
There does not have to be a cure for this. The US can fail. No law of nature says the US is forever.