Reply to U.S. Annual Inflation rose to 6.8% in November

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Reply to "U.S. Annual Inflation rose to 6.8% in November - the highest in 40 years"

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[quote=Anonymous][quote=jsteele]Before anyone panics, take a look at the release:

https://www.bls.gov/news.release/pdf/cpi.pdf

In particular, look at the chart at the bottom of page one. While inflation is increasing, it is trending down.

In October it was 0.9, in November it as 0.8, and in December it was 0.5. If this trend continues, we will get down to normal levels in a couple of months.
[/quote]

Would not be so confident with the prediction at all.  The biggest reason why the CPI has stayed so low even though Americans know and can generally feel inflation is worse than reported is because the US govt use obtuse metrics like 'owner-rent equivalents' for housing costs.  It's completely arbitrary and made up garbage.  I mean just look how much housing costs have exploded over the last 2 years alone, yet the lions share of that is not reflected in the CPI because direct housing price increases are not included in the CPI (dumb).  However, rents are often lagging and rise when housing rises.  Look at the table in the CPI #s and you will see that owner rent equivalent #s rose and are staying steady.  Go read how rents for everyone are now increasing, often by a lot.  The US govt will no longer be able to hide how bad inflation is as rents continue to rise, which will be reflected in the owner-rent equiv. #s.  Housing makes up one of the largest percentages for CPI measurements. Just wait until the rent increases that are occurring now start appearing in CPI numbers. They won't be able to artificially downplay inflation anymore even using their obtuse metrics for housing costs. [/quote]

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