Why Do Prices Keep Rising If Inflation Is 'Under Control'?

The Federal Reserve and the European Central Bank have recently stated that inflation remains below the 3% threshold, indicating an improvement compared to the peaks seen in recent years. However, these statements do not seem to reassure consumers, who continue to perceive a steady rise in the prices of many everyday goods and services. This discrepancy between official data and personal experience creates a sense of distrust and confusion.

The figures provided by monetary authorities are based on complex indices, which represent a weighted average of various economic sectors. However, consumers tend to focus on what directly impacts their wallets, such as the cost of food, energy, and transportation. When these essential goods see significant price increases, the impression is that inflation is still high, regardless of official reports.

This situation also highlights the differences between how inflation is measured and how it is perceived. While central banks focus on long-term data to guide monetary policy, households face immediate increases that affect their purchasing power. The perception of higher inflation than officially reported contributes to a loss of trust not only in institutions but also in overall economic prospects.

#inflation #economy #purchasingpower

[blackfang]

I just assume that the price of food going up that much is because there's like 3 people who control all the food being produced and distributed across my country. Sure there is the occasional farmer with a chicken or two that sells eggs independently, but essentially there is a monopoly. They had a constant investigation going on about fixing prices across the board some years ago, but the authorities could never find anything which isn't surprising because they could just agree on a conference call to set prices between them. However, all they would really need is one of them because they control 3/4ths of all the grocery stores in the country.

Dark days ahead when everything you see is covered with trademarks and slogans but they're all owned by the same couple/three people, but hey, that's the goal of capitalism, concentrate all wealth in a small group or even better, a single individual.

[michaelkornele]

Because the top earners never make enough

[antonteodor]

In short, inflation is hidden to appear lower because governments need high inflation to ease their debt, but don't want the people to know that the people are in fact paying for that debt. Could've said this much more concisely.

[petertan_sg]

It works in the past because the US wasn't as financialized as now.

[geteven]

we've only seen the beginning.
These criminals now manipulate the numbers. If there are never any consequences can you blame them?

[i_like_beer-of]

One things for sure, the owner of this AI youtube channel is making money

[Namelesso]

there lying to us all, if you think different, I'd like the stuff your taking.