Ask HN: About Financial Inequity

Re:Ask HN: About Financial Inequity by leereeves on Tuesday December 22, 2020 @03:12PM (#25510639)

I'd argue that the reported inflation rate (usually measured by the CPI) doesn't reflect the real cost of living. In the last ten years, rents in my city have doubled. In just the last five years, my average grocery bill has doubled. In just the last year, the average price of a used car has risen over 8%.[1] Meanwhile, the CPI has held remarkably steady at about 2% for 40 years.

According to the CPI, the cost of living has only increased by 20% over the last ten years, which is just not believable.

1: https://www.cargurus.com/Cars/price-trends/

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Re:Ask HN: About Financial Inequity by Tycho on Wednesday December 23, 2020 @05:52AM (#25516365)

I suspect the recent spike in car prices is due to the pandemic. Over ten years the cost seems pretty much flat (even as cars have become more advanced). Also, cities that are booming will outpace the rest of the country for rent (and therefore grocery) costs. I think you need to look across many cities to get a reliable picture.

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