New Home Owners And Snagging Forum
Investments => Financial Markets and the economy => Topic started by: The Prophet on November 06, 2012, 11:26:20 am
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If it is not bad enough that the so-called "basket of goods" is regularly changed when inflation is calculated and that there are two measures:
the Retail Prices Index (RPI) and the Consumer Prices Index (CPI), -the lower one always receives the headlines!
"Adjustments" are also made to both measures as well.
These adjustments are supposed to take into account technical improvements to goods, mainly consumer electronics, to reflect the fact that a 2012 TV is far superior to one from 1990, with statisticians reducing the current TV price.
These adjustments make the overall rate of reported inflation lower than it would otherwise have been.
But there is no adjustment the other way, to take account of worsening quality.
The statistics are changed when we pay less for more, but not when we are paying more for less, as is the case with flimsier clothing for example.
Does anyone tell it how it is anymore?
Why do we believe the doctored 'truth' our government departments release.