JUST IN | Inflation hits new 13-year high

[rvZA]

UK inflation set to hit 18% next year - SA is still doing well, relatively speaking. Developed countries have been used to low single-digit inflation for years...these high inflation rates are a real shock to them.

Last night I saw this video a woman posted on Monday in America. She has family over for the week. Some or the other family gathering. They are 15 people and they went to a store to buy groceries, goods, meat, food and cold drinks for 15 people the week. She filmed the whole escapade. filled 7 trollies with everything they needed to accommodate 15 people for a week.

She shat herself when she had to pay. Showing the totals on the till slip. She complained about increasing prices and could not believe she had to pay US$1,200 for everything. In SA there is no chance in hell to cater for 15 people for a week at R20k which includes food, meat, cold drinks and way more.

Even with high inflation abroad they are still light years ahead of SA in terms of living costs.

The real problem with inflation is when it becomes permanent, like here in SA and there is nothing that can be done to stop it again.

 

[OnePlusOne]

Show us your calculation using the same basket of goods.

Governments keep moving the goal posts ito how inflation is calculated. For instance, official CPI in the USA is around 9%, John Williams' Shadow Stats, using the same method used by their government, has it at around 13%.

Using the same method used in 1980, current USA CPI is around 18%. I have no reason to believe any other government would not lie and deceive their citizens.

Alternate Inflation Charts

www.shadowstats.com

 

["D"]

property barons on this forum are salivating at prospects of increased repo rate.

"13-year high"

An unlucky number.

Just our luck!

 

[Gnome]

In SA there is no chance in hell to cater for 15 people for a week at R20k which includes food, meat, cold drinks and way more.

Not sure what "way more is", but R1300 per person, per week is enough for someone to live reasonable well.
There are families in the country living on WAY less than that per week.

 

[TheMightyQuinn]

EU countries wish there inflation was as low as ours

Oh really? Netherlands inflation rate is 3.22%

 

[ToxicBunny]

Last night I saw this video a woman posted on Monday in America. She has family over for the week. Some or the other family gathering. They are 15 people and they went to a store to buy groceries, goods, meat, food and cold drinks for 15 people the week. She filmed the whole escapade. filled 7 trollies with everything they needed to accommodate 15 people for a week.

She shat herself when she had to pay. Showing the totals on the till slip. She complained about increasing prices and could not believe she had to pay US$1,200 for everything. In SA there is no chance in hell to cater for 15 people for a week at R20k which includes food, meat, cold drinks and way more.

Even with high inflation abroad they are still light years ahead of SA in terms of living costs.

The real problem with inflation is when it becomes permanent, like here in SA and there is nothing that can be done to stop it again.

As usual, what luxury shyte are you buying when you figure this out...

R20k for 15 people for a week is stupidly easy, and the stuff would all be very good.

 

[TheMightyQuinn]

UK inflation set to hit 18% next year - SA is still doing well, relatively speaking. Developed countries have been used to low single-digit inflation for years...these high inflation rates are a real shock to them.

So it will double? That does not sound plausable?

But then again...the energy crisis in Europe and the looming Winter. It's going to be very tough and prices of ALL commodities will rise dramatically.

 

[TheMightyQuinn]

She shat herself when she had to pay. Showing the totals on the till slip. She complained about increasing prices and could not believe she had to pay US$1,200 for everything. In SA there is no chance in hell to cater for 15 people for a week at R20k which includes food, meat, cold drinks and way more.

I see this on these threads time and time again:

you cannot do a simple ROE sum and then compare it like that. It does not work like that at all.

 

[me_]

Oh really? Netherlands inflation rate is 3.22%

Netherlands is at 10.3%

Netherlands Consumer Price Index (CPI) - March 2023 Data - 1960-2022 Historical

Consumer Price Index CPI in Netherlands increased to 124.72 points in March from 124.45 points in February of 2023. Consumer Price Index CPI in Netherlands averaged 62.20 points from 1960 until 2023, reaching an all time high of 128.25 points in October of 2022 and a record low of 15.35 points...

tradingeconomics.com

the Netherlands Inflation Calculator: World Bank data, 1960-2023 (EUR)

Calculate change in Euro value using World Bank data. Enter your numbers to get started. the Netherlands experienced an average inflation rate of 3.37% between 1960 and 2023.

www.officialdata.org

 

[Sinbad]

Sadly many within the government. Yet I mean you look at other countries with repo rates in the low region and their inflation isn't so bad. Than you look at Zimbabwe where the repo rate is 16 to 41%... Yup definitely helps inflation

Even here in UKnia

 

[B-1]

That's your personal inflation and this has always been true in every country. There is no way the general number can match up with any particular individual's spending pattern.

If you look at the biggest cost to most households like electricity, water, rates, fuel/transport, homeloan/rent etc they all went up by a lot more than the simple basket. Most people are feeling it way worse than its being made out to be.

 

[me_]

Governments keep moving the goal posts ito how inflation is calculated. For instance, official CPI in the USA is around 9%, John Williams' Shadow Stats, using the same method used by their government, has it at around 13%.

Using the same method used in 1980, current USA CPI is around 18%. I have no reason to believe any other government would not lie and deceive their citizens.

Alternate Inflation Charts

www.shadowstats.com

One of the biggest changes that's been made in most countries is the exclusion of housing costs or using rent instead of bond servicing. This was done largely because the main tool the reserve banks have to combat inflation is increasing the interest rate which makes it more expensive for people to service their debts so they have less disposable income available for other purchases and that in turn reduces demand and ultimately prices. If debt servicing costs were in main CPI figures, then these measures would artificially inflate CPI further.

Don't get me wrong - the consumer feels those increases, but that's the point and they are intended to drive other prices down.

Another adjustment a lot of countries have made is to lower the weighting of energy on the basket to smooth CPI over energy spikes. With the current energy shocks, a lot of countries will be under-reporting based on this.

 

[TheMightyQuinn]

Netherlands is at 10.3%

Netherlands Consumer Price Index (CPI) - March 2023 Data - 1960-2022 Historical

Consumer Price Index CPI in Netherlands increased to 124.72 points in March from 124.45 points in February of 2023. Consumer Price Index CPI in Netherlands averaged 62.20 points from 1960 until 2023, reaching an all time high of 128.25 points in October of 2022 and a record low of 15.35 points...

tradingeconomics.com

the Netherlands Inflation Calculator: World Bank data, 1960-2023 (EUR)

Calculate change in Euro value using World Bank data. Enter your numbers to get started. the Netherlands experienced an average inflation rate of 3.37% between 1960 and 2023.

www.officialdata.org

Core Inflation rate tracks changes in prices that consumers pay for a basket of goods which excludes some volatile price items.

And that stands at 4.9%

 

[rietrot]

Show us your calculation using the same basket of goods.

The point with questioning the the "official inflation" figure, is questioning the basket, Mnr. Smartypants.

 

[saturnz]

inflation is an increase in the money supply, the effect of which is an increase in the general price level

governments have changed this definition in the past 25 years to deflect the blame away from banks

 

[OhYeah84]

As usual, what luxury shyte are you buying when you figure this out...

R20k for 15 people for a week is stupidly easy, and the stuff would all be very good.

Roast lamb EVERY day at that budget. All 15 people will eat like royalty.

 

[rietrot]

inflation is an increase in the money supply, the effect of which is an increase in the general price level

governments have changed this definition in the past 25 years to deflect the blame away from banks

Mostly true, but very dogmatic take.

Cost-push inflation is also real inflation. Oil going up is because the supply of oil is being restricted, also by naverious government actions, but not money printing.

 

[saturnz]

Mostly true, but very dogmatic take.

Cost-push inflation is also real inflation. Oil going up is because the supply of oil is being restricted, also by naverious government actions, but not money printing.

That's a supply shock, not inflation.

 

[rietrot]

That's a supply shock, not inflation.

That is silly semantics

 

[saturnz]

That is silly semantics

no, inflation is that portion of an increase in general prices which relates to money supply