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Are there public information, which data is used for inflation calculation per country?
https://en.wikipedia.org/wiki/Harmonised_Index_of_Consumer_P...
This ought to ensure inflation rates are at least comparable on some level between countries.
Earlier quoted context omitted.
We have 9% inflation in the UK but the reality of the costs of things that you need to live a relatively simple life (food, heating oil, fuel costs), have all gone up way more than 9%. A shop that used to cost me £80 a week now cannot be had for under £110. So you can calculate them all you like and look at the data, but the reality in my life is that prices have risen way beyond the 9% we're told is the amount.
Same here in Germany. My napkin calculations on food & groceries is at least 30%.
I don't understand inflation. I understand that it's a measure of the price of things, but for me there should be two types of inflations 1. a dilution of money. Let say a central bank injects a lot of new money, then all prices will be higher, but salary will be higher too, and the overall effect is neutral 2. some prices increase due to change in supply or demand (e.g. gas or cereal), but salaries and everything el…
Price inflation measured through a basket is what media is usually referring to. .. that can be impacted by all sorts of things, be it price hikes in some industries or broad and steady price increases through prior monetary inflation.
No inflation is neutral though. Even monetary inflation has beneficiaries as those closer to the source of new money pay old prices the longest, for example.
I don't understand inflation. I understand that it's a measure of the price of things, but for me there should be two types of inflations 1. a dilution of money. Let say a central bank injects a lot of new money, then all prices will be higher, but salary will be higher too, and the overall effect is neutral 2. some prices increase due to change in supply or demand (e.g. gas or cereal), but salaries and everything el…
More money does not necessarily mean decreased buying power. If you have more people or if the money isn't in circulation, the buying power will stay the same, therefore not causing inflation.
Earlier quoted context omitted.
We have 9% inflation in the UK but the reality of the costs of things that you need to live a relatively simple life (food, heating oil, fuel costs), have all gone up way more than 9%. A shop that used to cost me £80 a week now cannot be had for under £110. So you can calculate them all you like and look at the data, but the reality in my life is that prices have risen way beyond the 9% we're told is the amount.
That is completely normal, though. Inflation is not the exact price adjustment of every basket of goods over time, that is simply not possible to represent in a single number - rather, it is some arbitrarily chosen basket of goods meant to represent an average household. It does not have to be perfect to be meaningful.
It usually converts to CPI in 3-6 months
Doesnt' every country calculate their inflation separately? Because living in Germany, that 7% is laughable. Nothing has risen by that little of an amount. Not food, rent, petrol, etc. Well, I do know of something that has risen to less than 7%: salaries.
https://news.ycombinator.com/item?id=31665931#31666116
Increase in housing prices contribute a lot. From what I know this is also the case in Lithuania and Latvia. And, at least in Latvia, a large part of that increase is due to building material prices. A lot of those got imported from 'further east', which has become somewhat difficult lately for reasons.
I am guessing the Baltic countries are hit hard by the Russia sanctions and the lack of cheap energy and food imports that has to come from somewhere else now.
Exactly. If you notice, the second and third place are taken by Lithuania and Latvia respectively. A lot of 'cheapness' in all kinds of sectors came from RUS/UKR/BEL somewhere upstream. Building materials being a prime example. So, a combined effect of energy prices, sanctions on RUS, a war raging in Ukraine. But then, as Estonian prime minister said recently - sure, gas is expensive, but freedom is priceless.
Typical politicians excuse, tbh. It's not like this has any relation to actual freedoms, only bs political slogans.
I don't understand inflation. I understand that it's a measure of the price of things, but for me there should be two types of inflations 1. a dilution of money. Let say a central bank injects a lot of new money, then all prices will be higher, but salary will be higher too, and the overall effect is neutral 2. some prices increase due to change in supply or demand (e.g. gas or cereal), but salaries and everything el…
Outside of the fact that "some people say" (generally anti-fed types) that inflation is an increase in the money supply, why is it you think that?
In economics inflation has a specific definition: a general rise in the price level. It can be caused by all kinds of things. A rapid rise in the money supply is one. A breakdown in available supply is another.
>Let say a central bank injects a lot of new money, then all prices will be higher, but salary will be higher too
Maybe, maybe not. There's economic theory around the stickiness of wages; they don't react as quickly as the prices of goods. And that's understandable. It's easy to raise wages, but difficult to reduce them.