Another Way to Look at Inflation

I asked Grok to calculate inflation based on the above post:

A simple average of the 146 listed year-over-year price changes is about 5.8%.

That figure is not the inflation rate. Official CPI inflation for July 2025–July 2026 was 3.4% (core inflation excluding food and energy was 2.5%). CPI is a weighted average that uses each item’s share of typical household spending. The post’s list is an unweighted collection of mostly rising categories and omits items that fell (used vehicles, some medical goods, etc.), so the 5.8% average overstates overall price change.

Grok’s mistakes:

It did not average them based on any weights. It also assumes that the government’s inflation rate is correct.

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2 responses to “Another Way to Look at Inflation”

  1. Shadowstats tracked inflation based on the 1980 method of calculations, before the data began to be “massaged” in order to make things look better. We’ve had double digit inflation for some time. Anyone that does their own food shopping and fills their own gas tank is aware that .gov figures are BS. Trump and company do neither and so they can engage in doublethink.

    1. Correct you are. Not only does the govt straight up underreport inflation, they also tweak the composition of the numbers used to create the index over time, so as to further lessen the top line number that gets reported. The sort of stats we are given now are insdistinguishable from Soviet era economic propaganda published in Pravda.

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