https://eyeonhousing.org/2022/11/inflation-shifts-to-slowest-pace-since-january/ National Association of Home Builders Discusses Economics and Housing Policy Thu, 30 May 2024 18:06:44 +0000 hourly 1 https://eyeonhousing.org/2022/11/inflation-shifts-to-slowest-pace-since-january/#comment-2043273 Tue, 15 Nov 2022 17:23:42 +0000 https://eyeonhousing.org/?p=32666#comment-2043273 I don’t see any good news here. The fact that the inflation rate is based on the increase/decrease from the same month of the previous year tends to distort the report. When inflation is very low the previous year, the reported rate usually shows an increase while when the previous year was very high, the report usually shows a decrease in the inflation rate. That is what is happening currently since the really high inflation rate started last fall. When there is an extended period of high inflation, I believe that the inflation rate for the same month of the previous year should be added to the current month’s rate and compared to the results of the same calculation for previous month to get a truer picture of the inflation trend during any longterm period of elevated inflaion. For example, the inflation rate for September 2021 was 5.390% while the rate for this September was 8.202%. Added together, the inflation rate for the two year period was 13.592%. The inflation rate for October 2021 was 6.222% and the rate for this October was 7.745%. Adding them together, the inflatiion rate for the past two years was 13.967%, an increase of .375%.

]]>