The Inflation Illusion: Largest Component Of Household Budget Growing At >10% YoY While “Inflation” Is Only 1.41% YoY

by confoundedinterest17

If we look at the US Personal Consumption Expenditures Core Price Index YoY, “inflation” is a modest 1.41%. However, the largest item for households in typically housing. And housing is rising at over 10% YoY.

Then we have S&P 500 Reported Earnings Share Weighted Avg Gain or Loss YoY growing at 6.1%. That represents >4x “inflation”.

The team of Powell and Yellen are “The Inflation Illusionists.” (Bernanke on the left)