Just a quick thought for the weekend…
In my last article, I wrote about the common mistakes made by people that ignore inflation. After reading this article, some of you may be asking the question: what inflation?
The Federal Reserve closely monitors inflation and reported an inflation rate of 1.6% in January. When compared to the historical average of about 3%, our current inflation seems relatively low. That is, if 1.6% is an accurate figure.
Anyone that buys anything can recognize the increased prices we pay, day-after-day, year-after-year. But, we continue to rely on the government numbers that tell us otherwise. If we question them, we are called “conspiracy theorists” or flat-out crazy. So, instead, we keep calm and carry on.
A Thought For The Weekend
I’m not going to call-out our government for fudging their numbers and risk falling into the “crazy” category. Instead, I want you to check out this article from The Economist. If you can’t find 5 minutes this weekend, here’s a summary:
The International Monetary Fund (IMF) is finally taking action to reprimand Argentine officials for reporting inaccurate inflation statistics. They have been reporting an average inflation rate of 10%, when in all actuality it’s closer to 25%. That’s quite a misrepresentation.
Is the United States guilty of the same sort of fudging? I don’t know. But it’s interesting to know that another country, Argentina, is.
Have a great weekend!