- Aug 10, 2020
- Reaction score
- Illinois, USA
- GMC Sierra Hybrid (2-Mode)
Actual data on the inflation rate:Yes, that would be great if they would only inflate at the target rate. But as we know, the real rate hasn’t been that low in years
I appreciate where you're coming from (the CPI isn't perfect and economic life in the United States has gotten harder for people) but the econometrics disagree with what "we know" here.
When you dig in to the details, the problem appears to be that new housing is not being built and medical costs are out-of-control -- even while other costs are going down or staying the same.
As for inflation, though, I have yet to find a better way to measure it than what the St. Louis fed does.
The New York Fed is pretty much hitting the targets, as measured by the St. Louis Fed.
P.S. FRED is a great source for economic statistics. A lot of things that "we know" don't agree with the data very well. One of my favorite surprises is that American manufacturing sector is doing reasonably well -- the decline is in manufacturing employment. Another surprise is to take a chart of the GNP of the USA and label political events (elections) on it -- you'll find that a lot of things politicians say about their effect on the economy just does does not agree with the numbers.