What the USA CPI did not tell you!
Only an Ivy League academic could examine the following yearly price data and conclude, as Bernanke has, that inflation is well contained:
- Unleaded gas up 24%
- Heating Oil up 28%
- Corn up 50%
- Wheat up 48%
- Coffee up 56%
- Sugar up 27%
- Soybeans up 30%
- Beef up 26%
- Pork up 22%
- Cotton up 101%
- Copper up 33%
- Silver up 72%
What about insurance?
What about medical?
What about electricity?
What about natural gas?
What about mortage rate?
It will be similar in a lot of other countries around the world. CPI is just not representative. CPI should be broken down to 3 categories according to age, between 18-32 (Gen Y), 35-45 (Gen X), 46-70 (Gen Z). It is also good to list down which item are "price controlled".
Each categories is effected by different consumption matrix. One group may be facing inflation, another group is facing mild deflation (those buying Property or luxury items)
So, how then to protect your hard earn income over the unannounced inflation?
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