I'm not asking if inflation currently exists - it definitely does - but I'm more curious to know if it actually is a big deal? Is it just a transitory thing or are there actual warning signs for larger issues?

Someone who is good at economics please explain

  • panopticon [comrade/them]
    ·
    3 years ago

    What's the difference between how stated (nominal?) inflation is found versus real? Does real inflation look at a lot more goods, or does it take only necessities into account?

    • LeninWeave [none/use name]
      ·
      3 years ago

      IIRC they've been redefining inflation for years to look at fewer and fewer/different things in order to keep the number artificially low. It isn't at all representative of cost of living.

      • NephewAlphaBravo [he/him]
        ·
        edit-2
        3 years ago

        Is this like how inflation would be a billion % if we included housing and secondary education costs?

        • invalidusernamelol [he/him]M
          ·
          edit-2
          3 years ago

          The CPI (Consumer Price Index) weighs housing, food, gas, cars, education, and medical care the same as iPhones, TVs, computers, rubber ducks, and Dude Wipes.

          So a massive increase in price of necessities can be neutralized by an equally massive decrease in price of toys.