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Inflation spreadsheet:
How high is inflation really? It is probably higher than the 8.6% reported this morning…
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Why The Official Inflation Rate is a LIE, Here’s YOUR REAL RATE…
Inflation is a term that is thrown around frequently in economic discussions, often causing confusion among the general public. It refers to the rate at which the general level of prices for goods and services is rising, eroding the purchasing power of a currency. Governments and central banks use various methods to calculate and report official inflation rates, which are supposed to reflect the average price increase experienced by consumers.
However, many argue that the official inflation rate is misleading and fails to accurately represent the true impact of rising prices on individual households. This is because the calculations used to determine these rates are based on a basket of goods and services that may not accurately reflect the spending patterns of the average consumer. Additionally, the weights assigned to different components of the basket may not accurately reflect their relative importance in household budgets.
One key reason why the official inflation rate is seen as a lie is the exclusion of certain vital expenses from the basket of goods and services used in the calculations. For example, housing costs, which make up a significant portion of most people’s budgets, are often excluded or given a very low weighting in official inflation measures. This exclusion significantly understates the true inflation experienced by individuals who have to deal with rising rents or mortgage payments.
Another factor contributing to the discrepancy between the official inflation rate and the real rate experienced by individuals is the quality adjustment made to certain goods and services. When the price of a particular product increases, the government may argue that it is due to improvements in quality rather than inflation. While this may be true in certain cases, it fails to account for situations where prices increase without any corresponding increase in quality. This adjustment effectively reduces the reported inflation rate, which can mislead individuals who only see their costs increasing with no added benefits.
Furthermore, the official inflation rate does not account for regional differences in prices. The cost of living can vary greatly from one area to another, yet the official rate assumes a uniform nationwide increase in prices. This again undermines the accuracy of the official inflation rate for individuals who live in areas where prices are rising at a faster rate than the national average.
So, if the official inflation rate is a lie, how can individuals determine their real rate of inflation? One option is to track their own personal expenses and calculate their own inflation rate based on the goods and services they typically consume. This may involve maintaining a budget and recording price changes over time. While it may be time-consuming, it can provide individuals with a more accurate reflection of their personal inflation rate.
Another alternative is to rely on alternative sources that analyze and report inflation rates beyond the official statistics. Some organizations and financial experts provide their own estimates of real inflation rates, taking into account factors that are often ignored by official calculations. While these alternative rates may not be perfect, they can provide a more nuanced understanding of the actual impact of rising prices on individuals.
In conclusion, it is clear that the official inflation rate is not an accurate representation of the real rate experienced by individuals. The exclusion of certain expenses, quality adjustments, and the failure to account for regional differences in prices all contribute to a distorted picture of inflation. As consumers, it is important to be skeptical of the official numbers and take steps to determine our own personal inflation rates based on our spending habits. Only then can we make informed financial decisions in an increasingly inflationary world.
Lets just be real here, a pack of ground beef at the market was about 6 bucks for me in 2019. Right now it's no less than 7 bucks on sale, typically around 9 dollars. That's a 50% inflation rate right there just for ground beef in my area. I'm looking at steaks now and surprisingly enough, the price has come down to be around 9-12 bucks a pound which is about where it was before covid. So depending on what you buy, you could get better value elsewhere or you could be screwing yourself over based on the market going rates at the time. While the price of food does fluctuate, that's why you take the average price of it over the year to see what the actual inflation is. It really does depend per person.
Do you have an adaptation to your spreadsheet for UK and other European countries’ inflation please?
I am currently searching for the difference between average prices just before covid-19 to today. I feel like this is going to be the best indicator for me. And my gut is telling me we're approaching the 50% Mark in the 3-year span. This is troubling for me but I own a business and I need to raise prices, and they need to reflect this 50% supposed increase.
I think a 50% yearly inflation rate matches up quite well with the price of gold. 20 years ago gold was around $200 dollars per ounce and now it's around $2000 per ounce which on average works out to about 50% increase per year since the year 2000.
My rate of inflation is 34.5% .
There's like a natural rate for most things to go up it's like two point something it's a function on a calculator anything higher than that and ya it's probably being artificially inflated by jackasses.
I rate the inflation rate according to a basket of groceries I usually buy every week not so long ago you could get a bag of grocery in the UK for about 12 pounds now it's at least double so the true inflation rate must be 50 per cent
My30 year mortgage goes up because of property tax escrow and house insurance causing an increase there also
It’s blatantly obvious at the grocery store. Everything is about 50% higher than a year ago.
Buddy your right on money. I look at gas . Meat . Groceries. To me 8 percent inflation means 8 dollars on a hundred. Meat up to 9 dollars from 6. Gas 100percent from 2 dollar . Thanks
look back at every recession/depression the US has had in the last 100 years. Look at what the inflation rates the 3-4 years prior to the recession/depression were. also look at how much the interest rates increased as well. 2 years from now you are going to see a collapse of unprecedented scale. It is going to be far worse then the great depression and it's going to be global. We import almost everything, our economy collapses and the wasteful spending stops economies around the world are going to fall like dominoes.
The way the inflation rate is calculated is being done to hide the truth. The inflation rate should be calculated from necessity items only common items like toilet paper, bar soap, chick, pork, beef, milk, water and eggs. Loans of any kind have no purpose being used in measuring the inflation rate because it is typically a fixed expenditure and it is also something that is not a requirement of basic survival. The current method used also doesn't take into consideration shrinkflation. Anyone bought taco shells recently? either my hands are growing or the shells are getting smaller and smaller. Manufacturers of good are decreasing quantity and the cost to you is the same. Static items like a gallon of mile, a gallon of water or a dozen eggs is not something that can be shrunk. I can tell you that a gallon of milk where I live has gone from $2.35 a gallon to $4.85. in the last year 1lb of ribeye steak went from about $14.00 a pound to $22.00. if the cost of gasoline has gone up from ~$3.42 a gallon to ~$5.82 you are going to see a similar inflation for the rest of the goods you purchase. When the costs of goods goes up the cost of services is going to go up to match the increase in the cost of goods. That's because businesses use percentages as the mechanism to calculate what is being charged. If an item costs $1.00 and there is a 20% increase the item becomes $1.20 to the business is the business has a 100% markup you would have paid $2.00 for that item and now you end up paying $2.40 which means you are paying double what the actual increase was and the business has increased their profits by doing this. It's the reason why you are seeing a lot of companies having record profits.
Consumer liverstock feed has increased by more than 25% in the northeastern US in less than one year. In single markup last week, the largest grocery retailer in the world was increasing their prices on many basic staples such as flour, bread, cooking oil, sugar etc. by over 30%. That was in addition to previous markups over the year. I've never seen it this bad.
Still wrong … weight it by what we spend money on and it's closer to 50%
pandemic tax.
Fuel controls everything. It's not only you are paying more at the pump, the cost of transporting goods goes up too. So food, clothing, basically anything since most everything needs to be transported rises too. Double edged sword.
Trucking companies don't pay this fuel increase. They negotiate a fuel surcharge so basically the higher cost is moved to the shippers and consigee who in turn increase the cost of the item (food, or whatever) and the consumer in the store pays more. Called inflation.
So if u buy brand new home and new car inflation is 40 percent lol
Inflation is so high that night crawlers for fishing Tripled in price
This video is blowing up on Rumble! Congrats man!
It's ridiculous to call it a LIE.
CPI is an estimate of inflation intended to be used for comparative purposes.
Did you consider that maybe they made changes to the index to make it more useful?
Calling it a lie implies they could publish the truth if they wanted to… which is a fantasy. It's always going to necessarily include estimates, assumptions and judgement. Because real inflation is different for everyone. There is no perfect way to calculate inflation for the entire country