Fuzzy Numbers - Inflation Actually 13%?

[wayneL]

This is taken from an excellent series if videos detailing the subterfuge that is modern Western economic reporting and the true picture of western ecomomies. One point is how inflation is far in excess than what is reported.

Highly recommended viewing!!!

http://www.chrismartenson.com/fuzzy_numbers

 

[white_goodman]

do we use hedonics and substiution in our basket of goods?

 

[wayneL]

do we use hedonics and substiution in our basket of goods?

Well, looking at the actual experience of inflation and the reported numbers in both Aus & UK, I would say yes.

But I don't know for sure.

 

[GreatPig]

Hmm... I think I might have to try adding some wage-push inflation to that.

GP

 

[Smurf1976]

Looking at just the past six months at some items I randomly selected late last year to monitor (all rounded to the nearest whole %). These are prices in the same shops at a major shopping centre in suburban Hobart so may or may not not be representative of prices in the other states.

Milk (reduced fat) +13%
Cashew nuts +50%
Pasta +22%
Mushrooms 0%
Bread rolls +10%
Mortgage (minimum payment) +7%
Electricity (household) +20%
BBQ gas (cylinder swap) +10%

My average weekly food and grovery costs +12%. Very little processed stuff in there apart from some frozen vegies etc. Remember this is just six months worth of data - it puts the annual rate of inflation at the supermarket in the order of 25%!

Only good news is that electricity was a one-off driven by the situation down in Tas with that now. Should be about 4% increase over the next 12 months. And mortgages shouldn't go up too much more in the near term. Other than that, it's getting expensive out there...

 

[CanOz]

This is taken from an excellent series if videos detailing the subterfuge that is modern Western economic reporting and the true picture of western ecomomies. One point is how inflation is far in excess than what is reported.

Highly recommended viewing!!!

http://www.chrismartenson.com/fuzzy_numbers

Excellent link Wayne, many thanks. Have you seen IOUSA yet?

Cheers,


CanOz