Posted by: Mathias Paul Kuhlmey
Judging by official inflation readings that are still at very modest levels (+0.2% YoY), rising prices appear to be a distant echo of the past—especially considering the substantial money creation that has taken place in recent years. Yet not much appears to be affordable any longer, particularly for the millions living in major metropolitan areas. The reason for this disconnect is that today’s official inflation measures may be largely understated, due to many formula reconfigurations of the consumer-price index (CPI) over the years, and also given rapid price increases in education, healthcare, and rent.
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