somekid

1 Comment

    • Global Inflation Rates [view article]
      User 166668:

      The inflation rate given is for consumers. Producers typically experience the worst end of inflation, probably an average of 7.3%, if I were to venture a guess (or regurgitate what a very competent finance professor said last week). It's entirely possible that you are getting burn worse than that, depending on exactly what industry you are in and a million other variables.
      Being a small mfg. only adds to the burn due to economies of scale, decrease in demand for goods in general, and rising wages.

      Richard:
      definition of median:
      The midpoint of the range numbers that are arranged in order of value.
      Of course it did not take into account any sort of weight, because doing so would make it and average (mean) instead of a midpoint (the middle number).
      I'm not saying that knowing the median does us any good, just that it's not what you seem to think it is.

      Dr Bagel:
      Excellent point. China's currency is also pegged to the USD, but they are experiencing higher inflation (at least according to these numbers). China's government subsidizes prices to hold them steady, allowing them some control over inflation despite lacking control over their own monetary policy. However, they also have the ability to increase fuel prices 17-18% across the nation over night (they just did). I don't know if these numbers reflect that change, in fact I doubt it, but my point is the same as toofan's, nations with pegged currencies do not necessarily follow the base value.

      Aside from all that, who the heck can determine what a basket of goods should include for each country and come up with figures that can meaningfully compare one to another? I definitely agree with the general consensus that inflation is typically understated and inaccurate in my own country (US) and find it hard to imagine that even a minority of the rest of the world is capable of measuring their own.

      Also, unrelated, core inflation is meaningless. Perhaps some of you do know someone in the US who does not drive or use fuel, but everyone eats food.

      Then again, what do I know? I'm just somekid       Jun 25 12:29 AM
Loading...
Symbols:
Authors:
Quick Links:
Contribute an Article Become a Seeking Alpha Contributor

Transcripts

More Transcripts»