Love it when they destroy their own narrative

[OccamsRazor]

I love it when a "news" article tries to stick to the narrative and then goes on to destroy its own story with actual numbers

Claims that inflation only went up 5-8% during COVID.. BUT...

Then goes on to talk about how rent is at an all-time high, new home prices are up 30%+ and new cars are up 25%+

Whatever buddy...

 

[HemiHauler]

I love it when a "news" article tries to stick to the narrative and then goes on to destroy its own story with actual numbers

Claims that inflation only went up 5-8% during COVID.. BUT...

Then goes on to talk about how rent is at an all-time high, new home prices are up 30%+ and new cars are up 25%+

Whatever buddy...

Those things are typically excluded from inflation numbers.

 

[OccamsRazor]

Those things are typically excluded from inflation numbers.

Understood. Kinda like saying "Lets discuss the costs of car maintenance BUT, we won't include anything regarding the engine."

 

[HemiHauler]

Understood. Kinda like saying "Lets discuss the costs of car maintenance BUT, we won't include anything regarding the engine."

It’s stupid to exclude these things to be sure. But it’s entertaining to read tome after tome from economists who will tell you why the government does this.

Check out the shadow stats website. They track inflation the way it used to be done, before the various things were removed.

On the one hand, perhaps removing housing makes a bit of sense. Way back in the years and months leading up to the housing crisis, prices were rising quickly, but the rest of the economy was within the 2% range the FOMC tries to maintain. To include housing in that environment, would have painted a different picture.

It’s important to be aware.

 

[OccamsRazor]

It’s stupid to exclude these things to be sure. But it’s entertaining to read tome after tome from economists who will tell you why the government does this.

It's damn well idiotic to NOT include the 2 largest purchases anyone can or will make when discussing the pains of inflation and rising costs.

 

[HemiHauler]

It's damn well idiotic to NOT include the 2 largest purchases anyone can or will make when discussing the pains of inflation and rising costs.

Sure. But the reasoning is that once you buy the house, your payments are static (unless variable rate, and anyone who used a variable rate note in the ZIRP of the last 15 or so years is dumb), therefore not a factor in cost-of-living inflation.

Renting is a different story, and is generally included in the calculations.

 

[OccamsRazor]

Sure. But the reasoning is that once you buy the house, your payments are static

Not really. Property taxes go up every year. As well as home insurance premiums. Factoring those into overall house payments means they go up.
What about new vehicle costs? Of course, one could use the cop-out that not everyone buys a new car but, not everyone buys the same kind of clothing or the same groceries however, those are used in the calculations. Makes no damned sense at all!

 

[HemiHauler]

Not really. Property taxes go up every year. As well as home insurance premiums. Factoring those into overall house payments means they go up.
What about new vehicle costs? Of course, one could use the cop-out that not everyone buys a new car but, not everyone buys the same kind of clothing or the same groceries however, those are used in the calculations. Makes no damned sense at all!

All I can do is point you in the right direction. You don’t have to agree with any of it to understand that facts is facts.