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][quote=Anonymous][quote=Anonymous]This is math illiteracy.  Just because increases went down doesn't mean raw inflation went down. Lol, increases are increases - just go look up the CPI #s from Oct, Nov, and Dec....sorry, but you're wrong. The CPI is increasing, and Americans absolutely feel it.

If I have 10 widgets this quarter, and make 11 widgets in the 2nd quarter, I have a 10% increase.  In the 3rd quarter I make 12 widgets, therefore my production over Q2 is only 9.1%, which is less than the 10% increase compared to the change over Q1-Q2.  However, in raw terms I still am making more widgets in Q3 compared to Q2 and Q1, it's just that my denominator is increasing which makes it appear the rate of change is slowing.  That still doesn't change the fact that the overall quantity of the denominator is still getting bigger and I am making more widgets. Inflation is NOT lower. It IS still increasing. You're just trying to claim the rate of change numbers somehow mean inflation is decreasing. It's not. Increases are increases.  [/quote]

You are confused. Inflation is a measurement of change on the underlying price, it is not the price itself. Price may continue to increase even if inflation holds at a steady value and does not change. In this case, inflation did indeed go down in December relative to November, even if the raw underlying price went up. Jeff's comments were on inflation, not underlying price. 
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Exactly. I didn't comment on CPI. I didn't comment on the annual rate of inflation. Here is the entire exchange:

[quote=jsteele][quote=Anonymous]Last day of December tomorrow - we'll get inflation numbers in 10 days. Any bets?[/quote]

Gas prices have gone down so inflation will likely be lower.[/quote]

CPI is not mentioned. Annual rate of inflation is not mentioned. All that is mentioned is the inflation number for December. I predicted it would be lower. It was lower. The first poster above would rather fight strawmen than use basic reading and math skills.
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Lol, I'm the original PP that called out your bad takes - one- or two-month fluctuations mean *nothing*.  The monthly inflation rate dropped from 0.9% in June to 0.5% in July to 0.3% in August...and then was back to 0.9% in October and 0.8% in November.  That's why people look at the CPI on a YOY basis - and this increased from 6.8% to 7%.  Question for you, Jeff: do you also think that stocks are a great investment if they go up today and a terrible investment tomorrow if they go down??

Since businesses eventually have to pass on costs to consumers, PPI is considered a leading indicator of where the CPI is going.  PPI was 9.7% for 2021 (i.e., above the 7% for the CPI), meaning there are likely more consumer price increases coming.[/quote]

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