USA May Be Underestimating Inflation

[Economy 53,076]

https://www.bnnbloomberg.ca/central-bank-mandates-have-canadian-inflation-higher-than-u-s-td-economist-1.2027206

 

USA last reading recorded 2.6% inflation while in Canada the reading came in at 3.4%. Interestingly a deeper dive into the data suggested both Countries are about the same in actuality. The differences come due to methodoligy in measuring the number

 

In the US shelter costs (which have gone up more than general inflation) only make up 15% of the calculation but in Canada it makes up 30%

 

While Canadiand do spend a higher percentage of their income on housing than Americans, it is certainly not double

 

The US also measures unemployment in a way that gets 1% higher than Canada

 

Experts exposing these often forgotten details are often a reminder that data statistics are subjective to a degree and not hard facts in stone. In addition when comparing Countries economic data points to eachother there is always a degree of apples to oranges as you are relying on data compiled by that Country and its methodologies to arrive at their numbers.

[TEANUS 16,188]

[rinasawachanta 3,484]

Here in Argentina the new liberal president Milei caused inflation of 20 to 23% in January alone 🤣 Those numbers are annual inflation?

[Economy 53,076]

3 minutes ago, rinasawachanta said:

Here in Argentina the new liberal president Milei caused inflation of 20 to 23% in January alone 🤣 Those numbers are annual inflation?

How did the new President cause it? Hasnt Argentina had extremely high inflation for years?

 

And usually they are listed as an annualized rate but im not sure if in ur case they mean total or annual. Considering Argentinas inflation has often hit triple digits (100% or more) id be more likely to think by 20% they mean absolute increase not annualized

[Economy 53,076]

41 minutes ago, TEANUS said:

Ive noticed the US manipulates its numbers a lot to sound better than it is

 

I remember how irritated i was when Trump said unemployment was lowest in 50 years (hitting like 3.3%) but if it was measured the same way it was in the 1970s the number now would be closer to 6%

 

And Trump while running for President always pointed out stuff like that. Funny how quickly he forgot that as soon as it became convinient for him to cherry pick the number...

 

Just like how low interests under Obama where creating a fake boom and a bubble but once he took over he wanted rates to stay low and wanted the Fed to keep rates at emergency lows to "create a rocket ship" under the economy

[Concertaholic 6,652]

1 hour ago, rinasawachanta said:

Here in Argentina the new liberal president Milei caused inflation of 20 to 23% in January alone 🤣 Those numbers are annual inflation?

Liberal?? Isn’t he a conservative fascist who wants to cut nearly all government spending 

[Ladle Ghoulash 55,280]

6 minutes ago, Concertaholic said:

Liberal?? Isn’t he a conservative fascist who wants to cut nearly all government spending 

Yeah, not a liberal by any stretch of the imagination 

[Ayesha Erotica 1,959]

Well, I always had the feeling that real inflation is higher than official inflation

I mean we go to stores and can compare prices ourselves

they are like 10%-20% higher

not just 2,6%

Haircuts, bread, sweets, cosmetics, its all more expensive by more than 10%

 

[Economy 53,076]

43 minutes ago, Okinawa said:

Well, I always had the feeling that real inflation is higher than official inflation

I mean we go to stores and can compare prices ourselves

they are like 10%-20% higher

not just 2,6%

Haircuts, bread, sweets, cosmetics, its all more expensive by more than 10%

 

Well to be fair 2.6% is the latest figures. Ur probably taking about changes in the past 1-2 years. I did reach almost 9% in the US at one point.

 

But even so i agree. I think some governments are under estimating it because the things we spend the most money on like groceries and housing make up a bigger share of ppls budgets than what is reflected in the CPI governments use

 

To be fair there may be times it over estimates it too. But rn its definitely under estimating it

[rinasawachanta 3,484]

1 hour ago, Concertaholic said:

Liberal?? Isn’t he a conservative fascist who wants to cut nearly all government spending 

 

1 hour ago, Ladle Ghoulash said:

Yeah, not a liberal by any stretch of the imagination 

Haha sorry, he calls himself a liberal because he is a liberal economically: basically he is in favor of the free market and the destruction of the State (which is what we Argentines are sadly witnessing). In terms of social policies, he is disgustingly conservative and fascist. When I said liberal I was referring to the economic aspect.

[Dancing Shadow 1,171]

even with everyone complaining about the gas prices? really? yikes..

[Economy 53,076]

25 minutes ago, SevenAteNine said:

even with everyone complaining about the gas prices? really? yikes..

Given annual inflation readings only go back 12 months, i doubt gas would be a factor into inflation readings

 

Dont forget last year oil went to like $110/barrel for a while from when Russia first attacked Ukraine, it was way higher than now

[Ladle Ghoulash 55,280]

47 minutes ago, rinasawachanta said:

 

Haha sorry, he calls himself a liberal because he is a liberal economically: basically he is in favor of the free market and the destruction of the State (which is what we Argentines are sadly witnessing). In terms of social policies, he is disgustingly conservative and fascist. When I said liberal I was referring to the economic aspect.

He’s definitely a libertarian, so I see what you mean