I’ve been looking for a reasonable explanation for this for a while and literally cannot find one. SO help me understand, please. ❤️🤷♀️
In: 42
They exclude food and energy because they are volatile and can be affected by many different things that don’t give a clear picture if the underlying trend.
Housing is excluded because they way they calculate housing is moronic and is a terrible measure. Housing is calculated with what is called “Owners equivalent rent.” Basically, they survey home owners and ask, I’d you were to rent out your house, what would you charge. People answering a survey unprepared will not give a good answer for that, so the number is a terrible one to consider.
Because the government never wants to look bad.
Statistics are often manipulated to make things look better or worse than they actually are. The Federal government is especially good at this.
Sometimes it is also just complicated as hell to ascribe a number to something.
There is almost always more to the story than any 1 number that describes something like “Inflation”.
Because the government never wants to look bad.
Statistics are often manipulated to make things look better or worse than they actually are. The Federal government is especially good at this.
Sometimes it is also just complicated as hell to ascribe a number to something.
There is almost always more to the story than any 1 number that describes something like “Inflation”.
Because the government never wants to look bad.
Statistics are often manipulated to make things look better or worse than they actually are. The Federal government is especially good at this.
Sometimes it is also just complicated as hell to ascribe a number to something.
There is almost always more to the story than any 1 number that describes something like “Inflation”.
We don’t. All those items are included in CPI. The basic premise of your question is wrong.
We don’t. All those items are included in CPI. The basic premise of your question is wrong.
We don’t. All those items are included in CPI. The basic premise of your question is wrong.
They fluctuate, affect people differently (e.g. people who live in social housing, or own their home outright, aren’t affected much by housing costs as they’re largely insulated from them) and measure different things. Housing, particularly bounces around like a looney disproportionately to everything else and yet if you’re retired or don’t have a mortgage, it might not affect you whatsoever.
In the UK, the government publish CPI (general consumer prices), CPIH (consumer prices including housing costs) and RPI (retail prices of a bunch of selected items) for this reason.
[https://www.ons.gov.uk/economy/inflationandpriceindices](https://www.ons.gov.uk/economy/inflationandpriceindices)
Anyone with a brain should pick a point at which they knew their salary, and plot their salary against the various indices to see how much they should be pitching for at their next pay review.
(A quick and dirty way:
Say you were earning £10,000 in Feb 2022 when the CPIH was 109.4 and want to know what you should be earning in Feb 2023 when the CPIH is 126.
https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/l522/mm23
Divide 10,000 by 109.4, multiply by 126. You should be earning £11,517 now – JUST TO BREAK EVEN. Anything less than that and you’ve taken a paycut in the last two years, because everything else got more expensive.)
They fluctuate, affect people differently (e.g. people who live in social housing, or own their home outright, aren’t affected much by housing costs as they’re largely insulated from them) and measure different things. Housing, particularly bounces around like a looney disproportionately to everything else and yet if you’re retired or don’t have a mortgage, it might not affect you whatsoever.
In the UK, the government publish CPI (general consumer prices), CPIH (consumer prices including housing costs) and RPI (retail prices of a bunch of selected items) for this reason.
[https://www.ons.gov.uk/economy/inflationandpriceindices](https://www.ons.gov.uk/economy/inflationandpriceindices)
Anyone with a brain should pick a point at which they knew their salary, and plot their salary against the various indices to see how much they should be pitching for at their next pay review.
(A quick and dirty way:
Say you were earning £10,000 in Feb 2022 when the CPIH was 109.4 and want to know what you should be earning in Feb 2023 when the CPIH is 126.
https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/l522/mm23
Divide 10,000 by 109.4, multiply by 126. You should be earning £11,517 now – JUST TO BREAK EVEN. Anything less than that and you’ve taken a paycut in the last two years, because everything else got more expensive.)
They fluctuate, affect people differently (e.g. people who live in social housing, or own their home outright, aren’t affected much by housing costs as they’re largely insulated from them) and measure different things. Housing, particularly bounces around like a looney disproportionately to everything else and yet if you’re retired or don’t have a mortgage, it might not affect you whatsoever.
In the UK, the government publish CPI (general consumer prices), CPIH (consumer prices including housing costs) and RPI (retail prices of a bunch of selected items) for this reason.
[https://www.ons.gov.uk/economy/inflationandpriceindices](https://www.ons.gov.uk/economy/inflationandpriceindices)
Anyone with a brain should pick a point at which they knew their salary, and plot their salary against the various indices to see how much they should be pitching for at their next pay review.
(A quick and dirty way:
Say you were earning £10,000 in Feb 2022 when the CPIH was 109.4 and want to know what you should be earning in Feb 2023 when the CPIH is 126.
https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/l522/mm23
Divide 10,000 by 109.4, multiply by 126. You should be earning £11,517 now – JUST TO BREAK EVEN. Anything less than that and you’ve taken a paycut in the last two years, because everything else got more expensive.)
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