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XMFSinchiruna (26.55)

An Alternate View of Real Inflation Figures - 7.5%? More?



March 07, 2008 – Comments (4)

I have not had a chance to look through this guy's methodology for arriving at these alternate figures, and I certainly don't agree with the conclusions he draws from his own data (he told CNN viewers recently to stay in cash with only a little gold exposure), I find his website interesting.

4 Comments – Post Your Own

#1) On March 07, 2008 at 6:46 PM, XMFSinchiruna (26.55) wrote:

The above alternate inflation figures were calculated using the methodology that the government used to calculate CPI in 1990, according to John Williams of  The chart below, with even more alarming implications if it's true, shows CPI as calculated according to the methodology used in 1980.

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#2) On March 07, 2008 at 7:43 PM, Tastylunch (28.52) wrote:

Yikes! nice find! Personally I think we are stagflated, I think price increases of 7% may unfortunately be about right. Much of the rising food costs have not been passed onto consumers yet as the big retailers have really labored to keep price down.

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#3) On March 07, 2008 at 9:05 PM, dwot (28.81) wrote:

I wonder if my lost comment will show up...

I would say the SGS alternate mirrors my life experiences. 

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#4) On March 10, 2008 at 3:20 PM, XMFSinchiruna (26.55) wrote:

Inflation has been pretty notable around here as well.  I actually made my first-ever investment in food yesterday.  See no reversal in sight to rising food prices, I stocked up on the healthiest canned goods I could find... enough pasta for months... sauce, etc.  Olive oil was on sale, so I bought 3 bottles.  :)  I think these will turn out to be wise investments.  I noticed pasta, which last time shopping was $1 per lb. across several brands, was now $1.40, with only 1 brand on sale for $1.  The market staff asked me whether I was having a pasta party... but when I told them I was stocking up because of inflation, it got through to them... several clerks and some other customers in line al heard me and nodded in agreement.  One couple said:  "I did see that sauce on sale... we should have stocked up too".  Many Americans perceive the inflation even if they hven't extended it forward in terms of what it will mean for them down the road... but in time they will start acting accordingly, and people will be buying in greater quantities when they shop.  Perhaps Costco's recent results were indicative of this.

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