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Investing - Theory, News & General • For stocks, you can set it and forget it. But for bonds, it’s not so easy!

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So the prices of the items you purchase move totally independently of inflation in the broader economy in both magnitude and direction?
Are you normal and average?

I know that I am not. And, the basket of goods that I consumed is not the same as the official CPI-U basket of goods. Plus, I do not have to consume the same set of goods if the price changes.

KlangFool
I don't think you answered the question that TimeLord was asking. I'll try: when CPI measured inflation rises, does the aggregate price of your purchases also rise, but at a different magnitude? If so, is the magnitude equally likely to be higher or lower? Is it also possible that the aggregate prices of what you purchase drops, even when CPI measured inflation rises?

Cheers.
I have answered the question. My personal Inflation rate has nothing to do with the official inflation rate at all.

KlangFool
Correct me if I am misunderstanding but what I hear you saying when prices rise you alter what you purchasing because of inflation to the items you would normally buy. How does that work with home owners insurance, auto insurance, electricity, gas and other mostly non-optional necessities?
Why does that matters when they are a very small portion of my overall annual expense?

How many percents of your annual expense consist of those items?

Please note that what you considered as necessities may not be the same as I do.

KlangFool

Statistics: Posted by KlangFool — Sun Oct 06, 2024 8:15 pm — Replies 52 — Views 3285



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