The Bureau of Labor Statistics (BLS) has been showing a steady increase in inflation over the last several months. BLS’s measurements are created by using statistical sampling techniques. Therefore, those measurements are only estimates of what they are trying to measure. Because of the use of sampling techniques, they are not definitive.
BLS uses a “basket of goods” to make their assessment. The basket is an estimate of what the average person buys, but different people may actually buy different baskets of goods (milk, eggs, butter, etc.). Therefore, some people will have higher inflation with “their” basket and other people will have lower inflation.
To stay ahead of inflation requires consumers to shop from different vendors. Many of us haven’t had to “shop” to get the better price of what we want for the last 40 years, because the prices between different vendors haven’t been as significant. Shopping for the best price is the way to stay ahead of inflation.
For example, recently I needed to get a new facet for my kitchen and I shopped several retailers to check their prices on the same facet. I was surprised how different they were FOR THE EXACT SAME FACET! The first vendor was $360, the second vendor was $270 and, finally, Costco was $160. Thank you Costco!
So if you want to preserve your purchasing power, you have to learn to comparison shop like we did in the 1970’s. This will be an awaking for those who just want to buy the first one they see. It’s your choice, but there is a cost for everything! Remember peace, free love (not free goods), and flower power!
Be smart, be aware, be well read and be successful.
