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A comment on Why the 2% Inflation Target? (2023). Parent comment

Re:Why the 2% Inflation Target? (2023) by chipdart on Saturday March 23, 2024 @02:03AM (#39797815)
> Annual wages are about 15% higher today compared to 1971 in real terms.

Since 1971, the cumulative inflation rate was around 700%, with an average annual inflation being well over 3%.

So while wages increased 15%, the price of everything else around us increased over 700%.

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Re:Why the 2% Inflation Target? (2023) by erko_ on Saturday March 23, 2024 @02:36AM (#39797923)
The 15% increase in wages is in real terms, meaning it's already been adjusted with inflation. Think of it this way: in nominal terms, wage increase would be 715%.
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Re:Why the 2% Inflation Target? (2023) by Rexxar on Saturday March 23, 2024 @06:15AM (#39798767)
+15% is x1.15, +700% is x8. 1.15x8 is 9.2 so the number you want is +820%.
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