The link to John Melloy’s post in our early reads caused a bit of a stir. Sure John Williams is a bit controversial, but he has been hammering on the “Official Data Understates Inflation” for decades now.
Sometimes, it helps to shift your perspective ever so slightly to get a better view on things. The chart below, which only looks at price rises greater than +/- 5%, will do that. (Mad props to Invictus for the chart work)
It is clearly the high-frequency items – primarily food and fuel – are creating most of the angst (Household insurance at 8.5% is one of my peeves).
But we typically don’t buy motorcycles, major household appliances, computers, or televisions on a weekly or monthly basis, and they have been deflating hard. (See Hackonomics take down of Hedonics as to why)
YoY Changes in Price Index Categories (+/- 5%)
Note: We get fresh numbers Friday, so this is an early glimpse of where we are . . .
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.