Worst part about inflation/CPI is how badly they game the system to keep the numbers lower than they really are, they've been doing this for decades. A couple simple examples, if something gets too expensive, they use another cheaper product for the inflation index, this happened a few years ago when beef was getting too expensive so they changed to using chicken to calculate it. If the quantity changes, they get the opportunity to substitute a cheaper product, say if a carton of eggs goes from qty. 12 to 10.
Another example is anything with technology, they get to deduct any new features/tech off the price increases when evaluated for inflation. For example if a 2010 base honda civic was $20k, and a 2020 base honda civic is $40k, let's say extra safety, convenience, etc. features they can "write off" $15k of that price increase, then for inflation purposes they only use a $5k increase, but the fact remains the cheapest honda civic you can buy is still $20k more than it was 10 years ago. Add wifi and resolution to the base TV model, even if the price goes up, it won't count toward inflation if they can explain the cost increase due to new features.
The financial outlook for the future is ugly for the average american.
Average price of a new car 2022: $47k 2000: $21k
Average price of a used car 2022: : $30k 2000: $10k
Average college student loans: $40k at 4-7% interest
Average price of a starter home: $250k (also keep in mind that last year 1 in 4 starter homes were bought by investment groups).
The National average rent for a 2 bedroom apt. $1990 a month.
Median household income in 2000: $60k
Median household income in 2020: $67k
What the median household income should be in 2020, using the 2000 $60k value and only adjusting for inflation: $91k So while the prices of many good and rent are climbing at higher than CPI average rates, median incomes have been flat for 20 years.
Only 4% of workers current have access to a traditional pension
Median 401k balance for 45-55 year olds: $85k (that's only for those with a 401k balance, 35% of Americans have no retirement savings at all)
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