Re:Skimpflation: A reason inflation is worse than the govern...
by sleepysysadmin on Monday November 01, 2021 @08:05AM
(#29065627)
CPI(~5%) is a go-to measurement because it attempts to avoid geo-politics. However, has a blind spot for the very fundamentals of inflation.
PPI(~10%) is a late stage measurement that doesn't avoid geopolitics. However, because of government policies it's said to have become useless. Yet still considered better than cpi.
Oil as a measure. When geopolitics are screwing with it, everyone knows. It's under immense abuse right now. Yet it's recent low because of covid was ~$20/barrel and it's up to ~$83. Or if you account for covid, it's up ~30%.
M2 money supply? It's got 40% inflation locked in, but that wont show up in a single year.
Call me crazy but PPI seems on the money. Geopolitics seems to be the biggest player in the game right now.
PPI(~10%) is a late stage measurement that doesn't avoid geopolitics. However, because of government policies it's said to have become useless. Yet still considered better than cpi.
Oil as a measure. When geopolitics are screwing with it, everyone knows. It's under immense abuse right now. Yet it's recent low because of covid was ~$20/barrel and it's up to ~$83. Or if you account for covid, it's up ~30%.
M2 money supply? It's got 40% inflation locked in, but that wont show up in a single year.
Call me crazy but PPI seems on the money. Geopolitics seems to be the biggest player in the game right now.