Comments on: The reported rate of inflation is a lie http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/ Moving beyond the basics Thu, 04 Dec 2008 07:17:09 +0000 http://wordpress.org/?v=2.2.2 By: Talk About Debt http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-34548 Talk About Debt Thu, 11 Sep 2008 20:42:31 +0000 http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-34548 You are absolutely right about the pusblished rate of inflation being under-done. Ask anyones has cut had to back on what they are able to buy at the supermarket or filled up their car with Petrol. I have read a few ex-ministers talk about the REAL rate of inflation being closer to 8%. Is it really necessary to fool ourselves with manipulated statistics? Surely knowing where we really are and then doing something about it is a better approach. You are absolutely right about the pusblished rate of inflation being under-done. Ask anyones has cut had to back on what they are able to buy at the supermarket or filled up their car with Petrol. I have read a few ex-ministers talk about the REAL rate of inflation being closer to 8%. Is it really necessary to fool ourselves with manipulated statistics? Surely knowing where we really are and then doing something about it is a better approach.

]]> By: Advanced Personal Finance » Blog Archive » Can We Believe Any Government Economic Statistic? http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-232 Advanced Personal Finance » Blog Archive » Can We Believe Any Government Economic Statistic? Sat, 09 Jun 2007 10:37:19 +0000 http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-232 [...] final example is a biggie. The CPI assumes that everyone in America rents. [See my post The Reported Rate of Inflation Is a Lie for a detailed explanation] As I’m sure you are aware, over the last few years home prices [...] […] final example is a biggie. The CPI assumes that everyone in America rents. [See my post The Reported Rate of Inflation Is a Lie for a detailed explanation] As I’m sure you are aware, over the last few years home prices […]

]]> By: Advanced Personal Finance » Blog Archive » How The Fed Generates Inflation http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-222 Advanced Personal Finance » Blog Archive » How The Fed Generates Inflation Tue, 05 Jun 2007 11:15:39 +0000 http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-222 [...] of how accurately you think the U.S. government reports on inflation (I think the reported rate of inflation is a lie and I hate the so-called ‘core’ CPI), everyone can agree on one thing - it’s [...] […] of how accurately you think the U.S. government reports on inflation (I think the reported rate of inflation is a lie and I hate the so-called ‘core’ CPI), everyone can agree on one thing - it’s […]

]]> By: fly http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-215 fly Sat, 02 Jun 2007 02:14:45 +0000 http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-215 I'm with Mark--renters feel the increase continuously, whereas only a subset (1/7th if moving the avg of every 7 years) of owners feel it. And on average, they benefit at the same rate. So I'm not convinced CPI is as bad as you say. See http://www.bls.gov/cpi/cpifaq.htm#Question_3 for "Whose buying habits does the CPI reflect?" I’m with Mark–renters feel the increase continuously, whereas only a subset (1/7th if moving the avg of every 7 years) of owners feel it. And on average, they benefit at the same rate. So I’m not convinced CPI is as bad as you say.

See http://www.bls.gov/cpi/cpifaq.htm#Question_3 for “Whose buying habits does the CPI reflect?”

]]> By: Advanced Personal Finance » Blog Archive » Inflation Tame, Huh? My Electricity Rates Just Jumped 50% http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-210 Advanced Personal Finance » Blog Archive » Inflation Tame, Huh? My Electricity Rates Just Jumped 50% Fri, 01 Jun 2007 13:32:34 +0000 http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-210 [...] See why I think the reported rate of inflation is a lie? [...] […] See why I think the reported rate of inflation is a lie? […]

]]> By: Practicing Basic Tax Diversification http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-200 Practicing Basic Tax Diversification Tue, 29 May 2007 13:30:28 +0000 http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-200 [...] currently writes about the topic at advancedpersonalfinance.com. Check out his post titled “The Reported Rate of Inflation is a Lie“. (Feed link to Advanced Personal [...] […] currently writes about the topic at advancedpersonalfinance.com. Check out his post titled “The Reported Rate of Inflation is a Lie“. (Feed link to Advanced Personal […]

]]> By: Mark http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-180 Mark Sun, 20 May 2007 13:21:19 +0000 http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-180 "The increased cost of housing for 69% of the U.S. population is ignored." I think your approach overestimates inflation for a lot of people. Me, for example. I already own a home. I'm not moving. Increases in "owners’ equivalent rent" mean nothing to be because my mortgage payment doesn't go up. To the extent the CPI increases due to "owners’ equivalent rent" it overstates the inflation to which I, and anyone not in the market for another house, am subject. “The increased cost of housing for 69% of the U.S. population is ignored.”

I think your approach overestimates inflation for a lot of people. Me, for example. I already own a home. I’m not moving. Increases in “owners’ equivalent rent” mean nothing to be because my mortgage payment doesn’t go up. To the extent the CPI increases due to “owners’ equivalent rent” it overstates the inflation to which I, and anyone not in the market for another house, am subject.

]]> By: The Money Mythos » Friday Finance Roundup (May 18) http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-174 The Money Mythos » Friday Finance Roundup (May 18) Fri, 18 May 2007 17:59:32 +0000 http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-174 [...] The reported rate of inflation is a lie I’ve been reading and learning about the Consumer Price Index (CPI), otherwise known in layman’s terms as the ‘rate of inflation.’ The CPI is calculated by the Bureau of Labor Statistics (BLS) and is reported periodically (monthly is the most common number quoted). The original idea of the CPI was to periodically collect the prices for a basket of consumer goods in order to gain information on price increases or decreases. [...] […] The reported rate of inflation is a lie I’ve been reading and learning about the Consumer Price Index (CPI), otherwise known in layman’s terms as the ‘rate of inflation.’ The CPI is calculated by the Bureau of Labor Statistics (BLS) and is reported periodically (monthly is the most common number quoted). The original idea of the CPI was to periodically collect the prices for a basket of consumer goods in order to gain information on price increases or decreases. […]

]]> By: Money Smart Life » Personal Finance Midweek Review - Merger & Acquisition Edition http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-165 Money Smart Life » Personal Finance Midweek Review - Merger & Acquisition Edition Thu, 17 May 2007 13:24:20 +0000 http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-165 [...] Advanced Personal Finance thinks the Consumer Price Index grossly understates actual consumer prices. [...] […] Advanced Personal Finance thinks the Consumer Price Index grossly understates actual consumer prices. […]

]]> By: Jon http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-163 Jon Wed, 16 May 2007 13:13:19 +0000 http://advancedpersonalfinance.com/the-reported-rate-of-inflation-is-a-lie/#comment-163 Thanks for the explanation. I was reading in the paper today how the market shot up yesterday due to lower than expected inflation rates. I guess now I know why! Thanks for the explanation. I was reading in the paper today how the market shot up yesterday due to lower than expected inflation rates. I guess now I know why!

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