Well if we use the US - we have to acknowledge that the actual rate of inflation is not on that chart. For starters it does not even take into account Shrinkflation - a trend that is not new. Secondly - the calculation changes to make inflation appear significantly lower for multiple reasons.
Then there are problems that CPI doesn’t cover housing costs anymore. And it allows nonsensical substitution. Such as implying that if you are used to buying $10 Roast Chicken - and are now forced to buy $2 Canned Chicken - you have experienced deflation. But in reality you cannot afford the roast chicken because of high inflation and your standard of living has gone down.
Well if we use the US - we have to acknowledge that the actual rate of inflation is not on that chart. For starters it does not even take into account Shrinkflation - a trend that is not new. Secondly - the calculation changes to make inflation appear significantly lower for multiple reasons.
https://www.fedsmith.com/2023/04/19/inflation-severity-depends-how-its-measured/
https://www.cnbc.com/id/42551209
Then there are problems that CPI doesn’t cover housing costs anymore. And it allows nonsensical substitution. Such as implying that if you are used to buying $10 Roast Chicken - and are now forced to buy $2 Canned Chicken - you have experienced deflation. But in reality you cannot afford the roast chicken because of high inflation and your standard of living has gone down.
https://courses.lumenlearning.com/wm-macroeconomics/chapter/examining-the-consumer-price-index/
We have too many measures tied to Poverty Rate and Inflation that it’s a quagmire to change it to reflect reality.