DavHamm wrote:
rich_m wrote:
i think some of it is communicating the message that they think their audience wants. An audience not ready or wanting to be told inflation is under control and prices are stable if they are stable at a level significantly higher than a year ago. ...which is probably the misunderstanding Windy's mate had about inflation.
Interesting that no one wants to talk about what basket of things are we talking about when we talk about inflation.
Most inflation baskets have little to do with what people spend their money on.
Do you really care what inflation of housing if you are not in the housing market, probably not. But if you eat lots of egg's you probably really care what their price is doing.. Not to many vegans care what the cost of beef is doing..
or about how changes in pricing of specific items in the basket impact the extent to which that item is purchased relative to the alternatives, and thereby contributes to actual inflation. For example if the price of beef increases by 25% but the price of alternatives stays the same then i would expect less beef to be consumed. How does that impact the inflation calculation? if the price of an item increases by so much that most people stop buying it and buy something else that has stayed the same price, then how can that price increase be contributing to inflation?
And the question remains. where were you.