Re:Using inflation tracking methods from 80s and 90s, inflat...
by cameldrv on Tuesday April 20, 2021 @02:13PM
(#26878551)
The quality and durability of some goods, like cars, has increased. Others, like home appliances have declined. It used to be, circa the 1990s or so, that a washing machine would last 20 years. Now 5 is pretty typical.
Re:Using inflation tracking methods from 80s and 90s, inflat...
by babesh on Tuesday April 20, 2021 @12:32PM
(#26876940)
I wonder what that better set of measures would be.
Food
Shelter
Health
Entertainment
Education
Communication?
Science?
Even within each, you have changes not only in quantity and quality but in kind.
The accepted definition of inflation is a general increase in prices.
The best measure of this is not self-evident, and CPI is an estimate of the cost of a basket of goods that represents basic living expenses. The old CPI series did not account for the quality and durability of the goods in the basket which was increasing over time.
Transportation is a big component of CPI, and it was observed that while newer cars cost more, they also last longer and have more features (airbags, antilock brakes, more reliable engines), which meant that CPI had become a hybrid inflation + technological advancement index.
There are various ways to fix this, but it's no conspiracy.