U.S. annual inflation rate drops to 8.5%

Re:U.S. annual inflation rate drops to 8.5% by collegeburner on Wednesday August 10, 2022 @12:56PM (#32415110)

wrong, it's a shitty metric. consumers care about inflation bc it represe ts their quality of life getting more expensive. trimming is the equivalent of saying "lol just downgrade" which is not a good answer.

you can't watch people switch their crab and milk for krab and powdered milk then be like "oh we'll just trim that out of inflation lmao". inflation is not supposed to measure change in average cost of necessities, it's supposed to measure change in a basket of basic goods.

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Re:U.S. annual inflation rate drops to 8.5% by ghaff on Wednesday August 10, 2022 @01:47PM (#32415860)

And that basket naturally shifts over time as certain goods which have reasonable substitutes rise sharply in price, as technology changes, as tastes change, etc. It would obviously be silly to compare against the same basket of goods as was used in 1970.

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Re:U.S. annual inflation rate drops to 8.5% by s1artibartfast on Wednesday August 10, 2022 @08:50PM (#32420303)

There is some truth to it if you want to think about purchasing power and quality of life.

A TV today is not the same as a TV in 1970.

The groceries a family buys today are not the same Goods or quality as someone would have bought in 1920

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Re:U.S. annual inflation rate drops to 8.5% by anotheracctfo on Wednesday August 10, 2022 @02:49PM (#32416723)

Its supposed to measure the effects of inflation on the wealthy, which is why substitutes are important, because it impacts their grocery stocks.

You can starve.

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