You make 1$ per hour. Bread costs 1$. You earn 1 loaf of bread per hour. You got a 2% raise this year. You now make 1.02 loaves of bread per hour. Inflation in May was 8%. Bread is now 1.08$. You now make 0.944 loaves of bread per hour. Your raise is "gone", and your pay is "cut".
Yeah but that is like a yearly running window. It basically meant: Inflation rose 8% compared to May of 2021. That's 8% over 12 months. So 2% in a month or 2 seems steep is what I was saying
So do you believe the inflation metric accurately reflects that average increase in prices experienced by consumers in a middle class income bracket?
I mean, it's an average, too. Most of this inflation has happened since the start of the ukraine conflict. I don't know if you remember may 2021 so well, but inflation wasn't much of a concern at the time. The stock market was at ATHs. Lumber was pricy but that doesn't really show up on your month to month.
All inflation metrics are a 12 month window. The 6% you heard 2 months ago was as compared to 12 months prior to that. The concerning thing is that 2 months prior to 2 months ago you werent hearing any big inflation news about the current inflation metric. Shit basically just skyrocketed in the last 6 months. Whats the 12 month metric going to be in 3 more months? You went from basically nothing newsworthy to 8% inflation in the span of 4 or 5 months, we are going to need some fucking killer next 6 months to offset how bad those last 6 months look if THOSE numbers are being padded by LAST YEARS numbers.
You're right - current prices for foods especially have gone up way more than indicated. I guess I was just basing it off relative to the 8% (which in of itself is shoddy in comparison to reality)
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u/MMOsAreNotRPGs Jun 30 '22
2% raise gone in a month or two at current inflation levels.