Re:More money than anyone imagined: an explanation for why t...
by tathougies on Friday July 26, 2019 @04:58PM
(#20538268)
> Regardless, I keep stats, and I'm doing worse than I was years ago. My rent has gone up about $300 a month (16%)
I have to hand it to you, this is one of the most insidious ways to misrepresent the true rate of inflation. If it was intentional, kudos to you; you almost tricked me. If it was not intentional, then a quick math nitpick:
If your coffee has increased 16% in price from five years ago, the average inflation rate (which almost always means per-year rate, and certainly means per-year given the stats cited above) is actually 16/5 = 3.2%.
Re:More money than anyone imagined: an explanation for why t...
by synchat on Friday July 26, 2019 @06:52PM
(#20539050)
Indeed, it's the 5th root of 1.16, or 3.0%. Doesn't make much difference, though - paying a greater proportion of income to maintain the status quo is a pain in the ass.
I have to hand it to you, this is one of the most insidious ways to misrepresent the true rate of inflation. If it was intentional, kudos to you; you almost tricked me. If it was not intentional, then a quick math nitpick:
If your coffee has increased 16% in price from five years ago, the average inflation rate (which almost always means per-year rate, and certainly means per-year given the stats cited above) is actually 16/5 = 3.2%.