https://twitter.com/charliebilello/stat ... 1178348575
"A WSJ analysis found that a commonly purchased basket of supermarket goods increased in price by 36.5% over the past 4 years (+8.1% per year), much higher than US Government CPI figures which show food price inflation of 24.9% (+5.7%/year)."
This is why TIPS don't work. You are losing purchasing power pretty rapidly.
I don't think any solution is "fool proof", especially if you are accounting for your own personal inflation rate. Here are the nominal compound annual growth rates of some consumer packaged brands and grocers/retailers since Jan 2021.
PepsiCo - 8.20%
Kraft Heinz Co - 6.42%
Procter & Gamble Company - 7.49%
Mondelez International Inc - 8.13%
Coca-Cola Company - 6.63%
JM Smucker - 5.77%
Walmart Inc - 8.82%
Target Corporation - 2.40%
Costco Wholesale - 24.43%
I didn't list any of the meat producers as most of them actually lost money the last 4 years despite consumers noticing higher meat prices but many other stocks did a decent job of keeping up with CPI.
Statistics: Posted by GP813 — Thu Apr 11, 2024 3:16 pm — Replies 3047 — Views 664541