this post was submitted on 15 Aug 2023
5 points (85.7% liked)
CanadaPolitics
2698 readers
146 users here now
Placeholder for any r/CanadaPolitics refugees
Rules
- Keep the original title when submitting an article. You can put your own commentary in the body of the post or in the comment section.
Reminder that the rules for lemmy.ca also apply here. See the sidebar on the homepage: lemmy.ca
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
It doesn't have to be all that realistic. All you are trying to determine is how the value of the currency has changed over time. Groceries tend to be especially volatile in their own value (fruits and vegetables can be less valuable during harvest, for example), which can mask the change in value on the other side of the equation. But at the same time groceries are great because everyone buys them regularly, which is exactly what you need to understand how their perception of the value of the currency is changing. Something people only buy once in their life would be completely useless. So, you seek some kind of balance in its inclusion.
It will never be perfect, but perfect need not be the enemy of good. And, in reality, economists will look at many different ways of calculating inflation when doing economisty things anyway. Headline inflation is just that โ for the headlines.