Martin Armstrong inflation calculations based on his model came in at 32% for 2022.
Most of you who buy the groceries, go out to restaurants, and pay the bills will be doubting the official inflation rate pedalled in the single digit, which does not resemble reality.
“Most of you who buy the groceries, go out to restaurants, and pay the bills will be doubting the official inflation rate”
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Martin Armstrong inflation calculations give investors a glimpse into reality
His inflation calculations are basic core inflation, which consists of food, energy, and transportation.
Martin Armstrong inflation calculations come in at 32% core inflation.
“We do not include housing values which rose about 11% in 2022, but because that is the national average, it includes places such as Texas and Florida and over states California and areas such as Chicago,” he wrote.
“Our index attempts to reflect the national core inflation of things that most people use. The largest increase was obvious fuel between gasoline and diesel used in trucking and homes averaging 65%+, eggs were up nearly 50%, flour rose by 25%, cooking oil by 23%, Butter was up 35%, Chicken by 14%, and Rice by 18%,” added Martin Armstrong.
“We do not include housing values which rose about 11% in 2022”
Martin Armstrong inflation calculations are higher than the Fed’s economist
This is because he focuses on items mainly used by households. He noted that including less popular items in the basket has the effect of distorting inflation to the downside. He argues that calculating inflation this way does not give a true and accurate picture of inflation.
“The more things you throw in, the lower the inflation rate”
– Martin Armstrong
“The more things you throw in, the lower the inflation rate. The national average rise in rental rates was 7.8%, in Florida it was 8.5%, and in NYC 1.5% when controlled,” wrote Martin Armstrong.
“If we broaden the list to include rents and coffee, which was up 15%, we can bring it down to about 27%. The Fed broadened the scope so widely that the rate came down to about 7%. The more you include, the lower the inflation rate. The object is to reduce government spending, which is indexed to the CPI,” he added.
Martin Armstrong inflation calculations highlight how the inflation data is cooked
This is to peddle whatever narrative the Fed deems beneficial to its private secret shareholders, a banking cartel.
In light of the above, investing has become a matter of deciding what fairytale will be peddled next and investing accordingly.
The role of the mainstream media is not to question, debate, or criticize the central bank’s monetary policy but to go along, pedal the narrative, and manufacture consent. Even the definition of a recession is redefined, and when the Fed head fails spectacularly, such as
Former Fed Bernanke, who got the subprime crisis in 2008 so wrong, yet he was awarded the Nobel prize for economics. It could only happen in the matrix. Invest accordingly.