The Conservative Cave
Current Events => The DUmpster => Topic started by: dutch508 on December 11, 2021, 07:59:08 AM
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Star Member Silent3 (11,711 posts)
https://www.democraticunderground.com/100216133453
When reports say inflation in November was 6.8%, is that an annualized rate...
...meaning that, if the same pace of inflation kept up for a whole year, prices would rise 6.8% over a year's time?
Or are they actually saying that consumer goods cost a full 6.8% more at the end of November than they did at the end of October?
A full 6.8% every month would compound to 220% over a year -- I find it hard to believe inflation is THAT bad.
:whatever:
Star Member Johnny2X2X (12,169 posts)
4. It's versus last November
So annualized, kind of. It’s expected to be around 4.5% for 2021.
It has been low for a couple decades, so any rise was going to be a story, but 4.5% wouldn’t have been a big story for most of the 20th century. It’s just not that big of a deal.
Star Member Mr.Bill (14,578 posts)
5. Anyone who thinks inflation is 6.8%
hasn't been to a grocery store or gas station in awhile.
Star Member progree (8,365 posts)
6. CPI Data and increases for the month, for the 12 months ...
Here's something I wrote in another thread to a similar question:
https://data.bls.gov/timeseries/CUSR0000SA0
Monthly CPI Data:
Year January February etc. etc.
2020 258.687 258.824 257.989 256.192 255.942 257.282 258.604 259.511 260.149 260.462 260.927 261.560
2021 262.231 263.161 264.793 266.832 268.551 270.981 272.265 273.012 274.138 276.724 278.880
So from October 2021 to November 2021, prices increased from 276.724 to 278.880 which is 0.779% increase, rounds to 0.8% increase as reported (all news stories I've seen include this 0.8% one-month number as well as the 6.8% one-year November-to-November number below).
That 0.8% number is not an annual or annualized rate. It is one month's increase. Annualizing that one month change (nobody does this or reports this): (1.00779^12 - 1)*100% = 9.76%
Now for the 6.8% Number: From November 2020 to November 2021, prices increased from 260.927 to 278.880, a 6.88% increase. That should round to 6.9%, I don't know why Yahoo Finance is reporting 6.8% (the BLS reports 6.8% too as the "unadjusted 12-mos. ended Nov 2021" )
https://www.bls.gov/news.release/cpi.nr0.htm
Addendum: I noticed the pre-pandemic November 2019 CPI is 257.989. The November 2021 CPI is 278.880, That's a 8.0976% increase over 2 years, which annualizes to (1.080976^(1/2) - 1)*100% = 3.97%/year (4.0%/year rounded)
:popcorn:
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Star Member Johnny2X2X (12,169 posts)
4. It's versus last November
So annualized, kind of. It’s expected to be around 4.5% for 2021.
It has been low for a couple decades, so any rise was going to be a story, but 4.5% wouldn’t have been a big story for most of the 20th century. It’s just not that big of a deal.
it would be a huge deal for you DUmmies if these numbers were reported from 2017 to 2020
Star Member Mr.Bill (14,578 posts)
5. Anyone who thinks inflation is 6.8%
hasn't been to a grocery store or gas station in awhile.
Your pizza will be ready shortly, Mr Bill
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Disregarding what damage inflation does for the moment, this coming year will be a true entertainment value on sites like DU and other lib pol sites and publications. There’s no way they can spin inflation as being “good” (though they will try) and the only way to curb inflation would be for the Cap’n Dementia regime to reel in their agenda (which is only making inflation worst), and they aren’t going to do that. All their “What about 1/6? What about the BBB? etc…” isn’t going to mean anything to the very people they need to vote for them.
Definitely :popcorn:
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Ladies and gentlemen, I present for your review the most informed geniuses on the internet, the DUmpmonkeys.
Behold their grasp of the most mundane subjects. They reasoning through difficult problems to arrive at the approved solution and opinion. It is amazing that we have the ability to see such a wondrous species. Be grateful my friends, be grateful for the opportunity presented.
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My oldest was born early in Reagan's years. The US has not had inflation on the current scale during her lifetime.
:ownit:
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Star Member Mr.Bill (14,578 posts)
5. Anyone who thinks inflation is 6.8%
hasn't been to a grocery store or gas station in awhile.
(https://ih1.redbubble.net/image.2609557887.9313/st,small,507x507-pad,600x600,f8f8f8.jpg)
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From the same people that tried to "prove" that Reaganomics never worked.