I get what you’re saying, but it’s a fact that official inflation numbers are based on the consumer price index, which is about retail prices. Of course that affects business’ bottom line and profitability? Not giving a fuck about consumers being happy is one thing but that’s not the point when it’s about companies making money. They have to sell it to a consumer to make money in the end.
I get what you’re saying, but it’s a fact that official inflation numbers are based on the consumer price index, which is about retail prices. Of course that affects business’ bottom line and profitability? Not giving a fuck about consumers being happy is one thing but that’s not the point when it’s about companies making money. They have to sell it to a consumer to make money in the end.
https://www.federalreserve.gov/faqs/economy_14419.htm
This states they pay attention to multiple measures of costs for individuals as well as producers.
I wonder how the CPI is weighted with other factors like commodity prices.
If you look at basic descriptions like this,
https://www.federalreserve.gov/economy-at-a-glance-inflation-pce.htm
it only mentions Personal Consumption Expenditures and Consumer Price Index.