Also if something like housing grows in price faster than inflation, then something else has to grow slower than inflation for the inflation number to be what it is. No matter what category you pick that grew faster than inflation, it doesn’t matter to the overall increase in prices by definition
For example, grocery prices have increased slower than inflation. It doesn’t actually make my argument any stronger, since it just means other things increased faster
Grocery prices is actually a great example of official inflation numbers being underestimated. My grocery bill has increased by a minimum of 50% (and more like 100%) since the pandemic, but official numbers put it at about 25%. They have a basket of goods that they base their numbers off of, but that basket changes and my suspicion is that they change it in a way to make the numbers look better than they really are. In my case, I’ve been buying the same stuff all along (i.e. mainly simple non-processed ingredients) with modifications only to try to reduce my bill (e.g. I haven’t bought any eggs over $2 a dozen, which means I haven’t bought eggs in a long time).
I sarcastically pointed out “at least TVs are cheaper” because yes, there are categories where some things are cheaper, but the far more important categories of housing, education, food, and health care have experienced ridiculous amounts of inflation.
Source on inflation being underestimated?
Also if something like housing grows in price faster than inflation, then something else has to grow slower than inflation for the inflation number to be what it is. No matter what category you pick that grew faster than inflation, it doesn’t matter to the overall increase in prices by definition
For example, grocery prices have increased slower than inflation. It doesn’t actually make my argument any stronger, since it just means other things increased faster
Grocery prices is actually a great example of official inflation numbers being underestimated. My grocery bill has increased by a minimum of 50% (and more like 100%) since the pandemic, but official numbers put it at about 25%. They have a basket of goods that they base their numbers off of, but that basket changes and my suspicion is that they change it in a way to make the numbers look better than they really are. In my case, I’ve been buying the same stuff all along (i.e. mainly simple non-processed ingredients) with modifications only to try to reduce my bill (e.g. I haven’t bought any eggs over $2 a dozen, which means I haven’t bought eggs in a long time).
I sarcastically pointed out “at least TVs are cheaper” because yes, there are categories where some things are cheaper, but the far more important categories of housing, education, food, and health care have experienced ridiculous amounts of inflation.