http://blogs.wsj.com/economics/2015/04/06/how-the-rich-and-poor-spend-and-earn-their-money/?mod=WSJ_hp_EditorsPicks
This article examines the differences in how inflation is being felt by different segments of the population. The important thing to note is that while the Fed consider inflation to be very low, for some segments of the population, inflation has continued apace~especially for those who are paying for college.
5 comments:
That's one of the weaknesses of such broad metrics such as inflation and unemployment. They don't accurately capture each individual sector of the economy, which may have more activity from certain income brackets than others. Just like sports have had a statistical renaissance the past 15 years or so, economists and public policy makers could benefit from more descriptive data to tell the whole story.
The data was really helpful in clarifying that the general assumptions on everybody enjoying low inflation is not really true.
It all depends on which category you fall under.
I think this is something that not only the fed fails to realize, but something that every body does. But this isn't something that we can avoid either. It is hard to accommodate for everyone because we are in these different segments.
This article is incredibly relevant. We continually feel the strain as school prices outpace inflation. I believe that food and labor costs will continue to drive up prices for many segments in the short run. Brian hits the nail on the head for more in-depth statistics being necessary to accurately portray inflation across different segments and cohorts.
This article emphasizes on the fact that the official inflation rate number is not as relevant to all individuals, because everyone experiences it differently. Even though, inflation rates have been relatively low for the past few years, college education costs have risen at a steady rate.
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