…Exactly what is inflation, and how do we measure it? The correct answer is not at all obvious, though plenty of people think it’s obvious…Today we will consider some different inflation measures…[and,] while none fully satisfies, it is very important to investors, savers, and people in general…[that] we…attempt to…[do so].
What is inflation, and what causes it? [Read on! It’s lengthy but well worth your time to read.] Also read “What is Inflation?” It is part of a series my team is developing to answer some common economics questions.[The above excerpts come from an article written by John Mauldin which originally appeared on MauldinEconomics.com and is presented above by the editorial team of munKNEE.com (Your Key to Making Money!) in a slightly edited ([ ]) and abridged (…) format to provide a fast and easy read.]
Related Articles from the munKNEE Vault:
The Chapwood Index reports the unadjusted actual cost and price fluctuation of the top 500 items on which Americans spend their after-tax dollars in the 50 largest cities in the nation and it shows price inflation to be much higher (by 40%!) than that indicated by the Consumer Price Index over the past 4 years!
Inflation is a significant measurement for the economic health of countries around the world but rates are often reported weeks after data is collected. To address this problem, two professors at MIT Sloan School of Management have launched the Billion Prices Project which is the first website to publish daily price indexes and provide real-time inflation estimates around the world. Words: 825
Shadowstats presents what they claim to be the original methodology used by the government to calculate the rate of inflation in the U.S. but Shadowstats’ John Williams is not calculating inflation any differently. He is not using the 1980s or 1990s methodology… [Instead,] all he’s is doing is taking the CPI data and adding on an arbitrary constant to make it look like inflation is higher!