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US Consumer Price Index up 4.2%

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Re: US Consumer Price Index up 4.2%

#101

Here are some N-year rolling total inflation charts to put this datapoint in a longer-term perspective: https://totalrealreturns.com/inflation . Zooming out always smooths the noise.

1918 isn't very relevant to modern living. And nobody wants to go back to the stagflation of the 1970s. And that scale is logarithmic.

Graph it without the logarithmic scale and draw a curve through the 1982-2018 data and the recent spike will explain why people are complaining about it.

Re: US Consumer Price Index up 4.2%

#102

Here are some N-year rolling total inflation charts to put this datapoint in a longer-term perspective: https://totalrealreturns.com/inflation . Zooming out always smooths the noise.

> Prices are up +4.25% in the past year, and +24.49% in the past 5 years, according to the latest CPI data released Jun. 10, 2026. The price level has approximately doubled (2.01x) today compared to August 1999. Not knowing if that's good/bad, as it is without any frame of reference, so the same data for Spain looks something like this: Prices up +3.2% in the past year, up +22.4% in the past 5 years. Compared to 1999…

Inflation isnt as simple as good/bad. Monetary theory shows us that short term inflation is a good way to counteract spikes in unemployment. Whether you prefer stable inflation with swings in unemployment or stable unemployment with swings in inflation or something in between is a political question.

Re: US Consumer Price Index up 4.2%

#103

Paradoxically, inflation has contributed to me taking a sabbatical. While I live in a LCOL area and made ~140k/year it just no longer felt worth it to work as I saw my retirement accounts start to match and exceed my salary in yearly gains. I do plan on going back to work in a part time manner, but inflation has killed any reason for me to work hard at a job for that level of salary. Furthermore, the feeling of "what…

Are you assuming yearly wages not increasing to match/exceed inflation every year?

The logical point here doesn't make much sense to me otherwise.

Re: US Consumer Price Index up 4.2%

#104
Worse is coming and the markets seem to be in complete denial about it.

Oil has only really maintained the ~$100/barrel price because of record SPR releases worldwide. Also, that $100 price is kinda fake because it's a future price. The spot prices got much higher. Well, that runway is coming to an end. If the Strait of Hormuz re-opened today , we'd still be facing an energy shock. Plus there's famine coming.

Now the US won't run out of oil or refined petroleum products. The uS is now a net exporter. But it's a global marekt so the prices are going to go way up. And some countries and heavily dependent on oil for electricity. They are going to face blackouts.

So even though fertilizer shortages are skewed towards the Global South, food prices too are global so they're going up too.

In 1973, the energy shock took ~6 months to manifest [1].

But I think the real problem is dynamic pricing. Inflation is insidious. People start raising prices on the expectation of rising prices, thus causing prices to rise. But so many industries now are going well beyond that by essentially colluding through AI tools (eg RealPage) to further raise prices.

I honestly don't know how this ends without a deep, long recession.

[1]: https://paulkrugman.substack.com/p/oil-crises-past-and-possi...

Re: US Consumer Price Index up 4.2%

#105

Earlier quoted context omitted.

Typically, you need a little more to make up for the difference in how much more taxes you pay at the marginal end vs the average for your total income... The median earner with a standard deduction would need a ~4.7% raise to stay even... "Inflation" is also increasingly distributed unevenly. The top 10% continues to make up a larger and larger portion of spending. It is entirely possible for ~4.2% inflation to be s…

Tax brackets are also inflation-adjusted, so shouldn't that cancel out?

No it pushes you into a higher tax bracket earlier so also acts as a tax increase

Re: US Consumer Price Index up 4.2%

#106

Prices have doubled since 1999!? Restaurant prices near me have doubled since 2015, easily. And that's not counting delivery going from free to 25% of the meal cost.

Yes restaurant prices have increased more but other things have increased less. For example entertainment, clothing, electronics, even automobiles.

Re: US Consumer Price Index up 4.2%

#107
post #82

Earlier quoted context omitted.

> Prices are up +4.25% in the past year, and +24.49% in the past 5 years, according to the latest CPI data released Jun. 10, 2026. The price level has approximately doubled (2.01x) today compared to August 1999. Not knowing if that's good/bad, as it is without any frame of reference, so the same data for Spain looks something like this: Prices up +3.2% in the past year, up +22.4% in the past 5 years. Compared to 1999…

2% is good, anything over 3% is not good, anything over 4% is bad, 5% and higher is really bad. Hope that clears things up for you.

The FED says that 2% is good. 2% is not good. Their target of 2% per year means we have 2% compounding annually devaluation of our currency.

Re: US Consumer Price Index up 4.2%

#108

Earlier quoted context omitted.

Why is the government measured inflation not the same as real inflation?

Americans spend a significant portion of their income on food and fuel, which are excluded. Historically, these together accounted for about 15% of their income, probably up to 20% after recent price increases.

They are not excluded from CPI. You may be thinking of “core” inflation but the baseline CPI includes those.

Re: US Consumer Price Index up 4.2%

#109

Earlier quoted context omitted.

Why is the government measured inflation not the same as real inflation?

Because people can’t internalize regional variance. So since the beginning of time, it’s not noticed when the national number is higher and fraud when it’s lower.

Ah, you're right. A broad, contrarian dismissal is exactly the way you should respond in any conversation related to CPI/inflation.

By the way, that coffee is $9. Sorry, Brazil tariffs and everything else - you understand.

Re: US Consumer Price Index up 4.2%

#110

Earlier quoted context omitted.

Typically, you need a little more to make up for the difference in how much more taxes you pay at the marginal end vs the average for your total income... The median earner with a standard deduction would need a ~4.7% raise to stay even... "Inflation" is also increasingly distributed unevenly. The top 10% continues to make up a larger and larger portion of spending. It is entirely possible for ~4.2% inflation to be s…

Tax brackets are also inflation-adjusted, so shouldn't that cancel out?

Most of the relevant numbers in the American tax code are inflation adjusted, but not all of them. The biggest ones for people on this website are probably the value of the Child Tax Credit and the thresholds at which the Net Investment Income Tax/Additional Medicare Tax kick in.
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