Real vs Perceived Inflation
Updated: Dec 11, 2019
Lets start by reiterating the old saying: "stats can lie but data doesn't". What that means is stats can be manipulated to saying what the person or entity wants while the raw data is what is it ( assuming its legit). The reality is there are signs that inflation as measured by CPI is higher than what is being reported by government stats. The reality is that Americans are increasing living pay check to pay check and savings is hard to come by. The reason simply is incomes are NOT rising as fast as cost of living ie inflation. But the real proof is just by noticing that consumer products even compared to a few years back cost more but are considerably smaller in size. Gov't inflation doesn't measure the volume per package just the package itself. I recently bought a package of Stella Dora cookies to my point where the cookies where HALF what they used to be. Everyone sees it but gov't doesn't measure it that way.
You be the judge on what's going on in real Americans lives vs what government statistics say. I believe what I see not what I am being told by someone else. After all, a critical component to keeping the growth of the economy is keeping rates low and a key component of that is keeping perception of inflation low thru reported statistics. But with more American's falling more in debt and unable to afford purchasing a house its self evident what I say isn't whats is reported.
Savings is the only way households can combat the effects of inflation that is why its critical to start saving early in life and let compounding do its magic.
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