81–90 of 566 posts
It's a bit higher in Denmark and I have a little too much stored as fiat in the bank. What is a safe asset to store value while inflation is >10% in a developed country?
It bears repeating because this is a common mistake in inflation discussions: a decrease in inflation metrics means price increases are slowing down, it doesn’t mean that prices are going down （that would require a negative CPI print). Also, this number is year over year, so the decrease just means the price increases between Oct 21 and Oct 22 are not as steep as between Sept 21 to Sept 22, which is not hard to achie…
It would have been much clearer for them to say, "The increase has slowed."
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Perhaps your angle is more in the vein of Goodhart's law, in which case I'm not sure what kind of market moves one would make with that information.
It bears repeating because this is a common mistake in inflation discussions: a decrease in inflation metrics means price increases are slowing down, it doesn’t mean that prices are going down （that would require a negative CPI print). Also, this number is year over year, so the decrease just means the price increases between Oct 21 and Oct 22 are not as steep as between Sept 21 to Sept 22, which is not hard to achie…
For the mathematically inclined among us, dp/dt is still positive. It's d^2p/dt^2 that is slightly negative.
It bears repeating because this is a common mistake in inflation discussions: a decrease in inflation metrics means price increases are slowing down, it doesn’t mean that prices are going down （that would require a negative CPI print). Also, this number is year over year, so the decrease just means the price increases between Oct 21 and Oct 22 are not as steep as between Sept 21 to Sept 22, which is not hard to achie…
For the mathematically inclined among us, dp/dt is still positive. It's d^2p/dt^2 that is slightly negative.
https://totalrealreturns.com/s/USDOLLAR?start=2021-11-10&end...
or over a longer time period: https://totalrealreturns.com/s/USDOLLAR
(this site is my side project)
If "p" is the relative price level index (CPI-U in this case), then "1/p" represents the relative purchasing power of a single dollar over time -- explained on homepage in more detail.
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you are describing pretty much the Big Mac Index https://en.wikipedia.org/wiki/Big_Mac_Index
It bears repeating because this is a common mistake in inflation discussions: a decrease in inflation metrics means price increases are slowing down, it doesn’t mean that prices are going down （that would require a negative CPI print). Also, this number is year over year, so the decrease just means the price increases between Oct 21 and Oct 22 are not as steep as between Sept 21 to Sept 22, which is not hard to achie…
I.e. the rate of price increase has slowed, not the price increase itself
Earlier quoted context omitted.
There is no possible way to make an inflation number that works for one person, let alone a whole country. The best you can do is have a statistic that you stay with and compare.
In the early-1990s, political Washington moved to change the nature of the CPI. The contention was that the CPI overstated inflation (it did not allow substitution of less-expensive hamburger for more-expensive steak). Both sides of the aisle and the financial media touted the benefits of a “more-accurate” CPI, one that would allow the substitution of goods and services. The plan was to reduce cost of living adjustme…
It bears repeating because this is a common mistake in inflation discussions: a decrease in inflation metrics means price increases are slowing down, it doesn’t mean that prices are going down （that would require a negative CPI print). Also, this number is year over year, so the decrease just means the price increases between Oct 21 and Oct 22 are not as steep as between Sept 21 to Sept 22, which is not hard to achie…
For the mathematically inclined among us, dp/dt is still positive. It's d^2p/dt^2 that is slightly negative.
It means CPI_oct22 - CPI_oct21 d^2p/dt^2 isn't necessarily negative.