We see rapid asset inflation across the board. Check recent commodity prices across copper, lumber, food, water etc. Everything has been rising dramatically during the period that the world has been practicing what you call 'Quantitative easing'. Inflation isn't just related to Forex if all the worlds currency's are inflating, albet just maybe faster than the USD. And the only reason the US is not inflating faster than the rest of the world is because the IMF is based in USD.
No, we aren’t.
> We see rapid asset inflation across the board.
“Inflation”, without modifiers, refers to consumer price inflation (final goods and services). Asset inflation is a different thing, as is monetary inflation. Monetary inflation can contribute to both asset inflation and consumer price inflation, but those two outcomes are somewhat in tension; asset inflation isn’t pent up potential for consumer price inflation, but an explanation for why consumer price inflation isn’t happening and isn’t likely to happen without change in the fundamental economic processes.
Specifically, monetary inflation driving asset inflation but not consumer price inflation is a sign that the money is going to people is marginal use of additional access to money is to invest rather than spend, absent changing the distribution, the outcomes aren’t going to change.
Any time there is price dispersion within the goods and services of the market basket, it's likely that the basket composition itself is changing too. CPI has no way of responding quickly to this change.
“retirement” isn’t a good or service.
Childcare has inflated slightly faster than general inflation over the last 5 yeara (2.22%/yr vs. 1.86%/yr).
Healthcare has inflated a bit faster (medical care @ 2.46%/yr, hospital and related services @ 3.89%); health insurance, has been notably higher (in large parts due to the federal government failure to follow the law on the ACA) @ 5.98%/yr.
Education has inflated much more rapidly than general inflation, @ 29.15%/yr.
So, what? That’s how aggregates work. Obviously, we could just as easily find a list of consumer goods and services where inflation is lower than general inflation. That wouldn’t prove that inflation is even lower than reported, and neither does higher inflation in some sectors prove that inflation is higher than reported.
"IMF is based in USD" -- Are you not familiar with special drawing rights (SDR)? Please explain if I do not understand your comment.
>Are you not familiar with special drawing rights (SDR)
Not really to be honest? but i don't get your point in bringing it up. I know the US has the highest SPR weight by far and that the IMF was created by the united states after we got off the gold standard. My point was that the US has a massive influence on a standard thats supposed to be 'International' and thus controls the Forex and thus 'relative' Inflation. (Our inflation in regards to other currencies as opposed to some real meaning of the word inflation)
To be clear about SDR: US has 42%, EU has 31%, China has 11%, Japan has 8%, and UK has 8%. Is 42% > 31% "highest SPR weight by far"... ? All the non-US majors combined... US does not looks so big. It has been falling for decades as the world economy re-balances.
"The price of eggs." What next: Will you talk about low interest rates "punishes savers"? What portion of wages do highly developed countries spend on food? (Exclude [South] Korea and Japan, which are extreme outliers.) The answer: Vanishingly small amounts. And, it continues to fall each decade.
"[P]rices of housing, healthcare, education, retirement" -- is this true in socialist market economies in Continental Europe, like Germany, France, Italy, Austria, Switzerland, Netherlands, Belgium, Spain, Portugal, Sweden, Finland, Denmark? No, it is not. I will admit: Life for middle class (and below) in the UK is surely worse in the last decade for all of the above that you mention.
