Quote:
Originally Posted by Jim-Bob
The problem with the CPI food index is how it is weighted. It is not a pure reflection of cost. The indexed items change to reflect what the majority of consumers are purchasing within a given category. So, for example, if more people start buying hamburger and less buying steak, it indexes the price of hamburger. The price of hamburger may well have increased substantially. However, the prior calculation would have been based on steak, not hamburger. Thus the index remains little changed whereas the actual price the consumer sees has changed substantially. I do my own grocery shopping and have seen a substantial increase in cost. Even staples like ramen noodles have gone up by around 40% in the last year and milk and dairy products have also shot up substantially.
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I don't follow that argument at all. I have not seen the prices of the food I buy go up at all over the last 5 years. My income has not gone up by much, and we are still within budget. Eggs and milk prices have been totally stable in my area. Don't buy much ramen though, I don't consider that a staple or food.
Broadband and television though, holy smoke! I disconnected the cable.