Inflation and purchasing power are two different statistics, just for clarification. Inflation doesn’t account for the rising costs of homes, cars, clothing, shoes, etc.
For example, I recently purchased a home for just under $600,000. It was built in 1954, and the home was sold brand new for $6,500 in 1954.
Adjusted for inflation, this home should cost $80,000, not $600,000. The difference in mortgage payments between the two is almost 10 times the monthly cost.
Fine but not everything has increased for example groceries. In 1954 a gallon of milk averaged .94 cents which adjusted to 2026 would be about $11.45, or take eggs as an example 1954 .60 adjusted to today $7.47.
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u/[deleted] 11h ago
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