I don’t know about others but I don’t overly depend on CPI. For me, my relevant rate of inflation to my reality is not some stats crafted by the government. If the exemptions from CPI data (food, petrol Etc) is where I spend my money on, that’s my “inflation”. There are many things tied to CPI such as COLA (cost of living adjustments) for other big items like Social Security checks so one might wonder if there is no incentive (conscious or otherwise) to keep certain public metrics low. Not saying that horse 🐴 is alive. Just saying I don’t even care
As a private investor that is exactly what you should do. And a long time ago I have written about personal inflation and how it is different from official inflation. But financial markets don’t care about your personal inflation. They care about the official number, justified or not.
I don’t know about others but I don’t overly depend on CPI. For me, my relevant rate of inflation to my reality is not some stats crafted by the government. If the exemptions from CPI data (food, petrol Etc) is where I spend my money on, that’s my “inflation”. There are many things tied to CPI such as COLA (cost of living adjustments) for other big items like Social Security checks so one might wonder if there is no incentive (conscious or otherwise) to keep certain public metrics low. Not saying that horse 🐴 is alive. Just saying I don’t even care
As a private investor that is exactly what you should do. And a long time ago I have written about personal inflation and how it is different from official inflation. But financial markets don’t care about your personal inflation. They care about the official number, justified or not.
Touché
A neatly written article, making a point without excess waffle.
Should be required reading for any MP, or the equivalent around the world - there's even a chart or two for the hard-of-understanding.