Daily review 29/01/2020

Written By: notices and features - Date published: - 7 comments
Categories: Daily review

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This provides Standardistas the opportunity to review events of the day.

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7 comments on “Daily review 29/01/2020”

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  1. 1

    "Wonks tell us, with all sincerity, things like “the US cost of living rose 2.1% last year.” Really? To an actual numerical decimal place? On something as vague and as complex as inflation? Now, to give them credit, they are looking at the total national inflation rate and it is extraordinarily complex. They do the best they can.

    But the inflation you and I experience? They don’t know that. They can’t know it, at least not with any precision because the cost of living is so individualized. Everyone spends their money differently, and the things they spend it on vary in price for many reasons."

    https://www.interest.co.nz/opinion/103396/john-mauldin-suggests-its-time-consider-changes-inflation-measures-better-reflect

    NZ CPI (measured inflation) has averaged 2.15% since 2000….but in the real world?

      1. 1.1.1

        probably not as the housing question is muddied by the serviceability factor determined by both mortgage size and interest rates (which are at historic lows)….I believe we need a parallel inflation measure that only measures the basic necessities of joe publics monthly outgoings..i.e. basic foods, energy, housing (and not the absurd part measure currently used) taxes (rates, GST etc) medical and insurances, maybe one or two others, the things that are absolutely necessary and in no way discretionary.

        They can keep their CPI for international comparison if they so wish.

        1. 1.1.1.1

          Dont disagree,housing for a significant number of NZers can be over half their household income.

          do the new wellbeing metrics identify these issues?

          1. 1.1.1.1.1

            yes housing can be…and it is rather lightly weighted in the CPI. As to the Wellbeing measures I dont believe there is specific measurement in the terms I describe as far as the RBNZ is concerned

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