Despite all the things I consume getting radically more expensive (food gas shelter) and a huge expansion of the money supply the official inflation numbers are extremely low! I bought PHN650 inflation linked bond fund when QE started thinking that it must result in inflation; I was wrong. However inflation is calculated they are leaving the goods I consume out of their basket. The economist should get a new Big Mac index, maybe an organic meal index.
What do you expect when a government agency calculates inflation, while other government agencies has liabilities pegged to inflation (Social security, TIPS)?
Sure, they're different agencies, but that doesn't matter in the slightest. It's like two departments in one company.
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Despite all the things I consume getting radically more expensive (food gas shelter) and a huge expansion of the money supply the official inflation numbers are extremely low! I bought PHN650 inflation linked bond fund when QE started thinking that it must result in inflation; I was wrong. However inflation is calculated they are leaving the goods I consume out of their basket. The economist should get a new Big Mac index, maybe an organic meal index.
What do you expect when a government agency calculates inflation, while other government agencies has liabilities pegged to inflation (Social security, TIPS)?
Sure, they're different agencies, but that doesn't matter in the slightest. It's like two departments in one company.
According to Shadowstats, which calculates inflation using the 1990-based CPI methods, inflation currently is at 4.5% per year. http://www.shadowstats.com/alternate_data/inflation-charts