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Official vs unofficial inflation
Topic Started: 29 Dec 2013, 10:08 AM (3,388 Views)
Dr Hank
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What are peoples views on official inflation being 2-3% at the moment, and has been for a while

versus the unofficial inflation rate of i suspect 4-5%?? gas, electricity prob more

why was land taken from the cost of calculating cpi in 1998?? obviously to hide inflation but why???

cheers all
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peter fraser
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Dr Hank
29 Dec 2013, 10:08 AM
What are peoples views on official inflation being 2-3% at the moment, and has been for a while

versus the unofficial inflation rate of i suspect 4-5%?? gas, electricity prob more

why was land taken from the cost of calculating cpi in 1998?? obviously to hide inflation but why???

cheers all
I can't think of why they would ever use the cost of land. The ABS use rent to calculate the cost of housing.

I think that the official stats are quite accurate.
Any expressed market opinion is my own and is not to be taken as financial advice
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Count du Monet
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It depends on what constitutes inflation. Price inflation is a poor guide, according to Milton Friedman inflation is always a monetary phenomenon. The basket of goods used by the CPI is also arbitrary.

I think the only price inflation that matters is that on the slaves rations.

A basic monetary unit is a quantity of petroleum. So in terms of slaves rations a guiding principle will be units of petrol available per capita.

As regards money though, the inflation rate has been 5% to 5.5% since Basel One.

The next trick of our glorious banks will be to charge us a fee for using net bank!!!
You are no longer customer, you are property!!!

Don't be SAUCY with me Bernaisse
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Dr Hank
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peter fraser
29 Dec 2013, 12:47 PM
I can't think of why they would ever use the cost of land. The ABS use rent to calculate the cost of housing.

I think that the official stats are quite accurate.

peter, why wouldnt they use land price increases??

it is real, and a major cost to the average person

i think it was a sneaky attemot to hide inflation
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peter fraser
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Dr Hank
29 Dec 2013, 01:09 PM

peter, why wouldnt they use land price increases??

it is real, and a major cost to the average person

i think it was a sneaky attemot to hide inflation
How often do you buy land?

Any expressed market opinion is my own and is not to be taken as financial advice
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Dr Hank
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peter fraser
29 Dec 2013, 01:22 PM
How often do you buy land?

the cost of land comes into everything

farmland cost

rental in a shopping centre

interest payments on a mortgage


I can't understand why you would not want to include the cost of land in inflation calculations

it is very sneaky and hidden by the rba
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zaph
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Dr Hank
29 Dec 2013, 01:09 PM

peter, why wouldnt they use land price increases??

it is real, and a major cost to the average person

i think it was a sneaky attemot to hide inflation
Land is an asset not a consumable. You don't consume land, only the building that sits on it.
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Count du Monet
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peter fraser
29 Dec 2013, 01:22 PM
How often do you buy land?
He doesn't have to buy it. The cost flows to him because purchases the good and services of those that do or must buy land. If he rents, then the property cost to some degree will become a cost for him.

What motivates you Peter? You just made of the stupidest assertions in all of human history.

Is this planet of the dummies? :bl:
The next trick of our glorious banks will be to charge us a fee for using net bank!!!
You are no longer customer, you are property!!!

Don't be SAUCY with me Bernaisse
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Dr Hank
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the RBA should include the cost of land, as they used to, in the calculation of cpi

it is sneaky that they don't, or rates would have gone through the roof in the 00's to reflect this

inflation 3%...that is bullshit
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zaph
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Count du Monet
29 Dec 2013, 01:33 PM
He doesn't have to buy it. The cost flows to him because purchases the good and services of those that do or must buy land. If he rents, then the property cost to some degree will become a cost for him.

What motivates you Peter? You just made of the stupidest assertions in all of human history.

Is this planet of the dummies? :bl:
Then those cost flows will be reflected in other elements of CPI. If he rents then it will be reflected in the rental component of CPI. If an increase in the cost of farmland leads to an increase in the cost of produce then that will be reflected in the groceries component of CPI. etc etc.



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