The KSH(CSO) provides real figures - also on inflation

The KSH(CSO) provides real figures - also on inflation

In the previous two sections (1, 2) we dealt with the CSO wage statistics. Now we take inflation.

The rate of inflation, the consumer price index (3), indicates an increase / decrease in the price of about 1000 relevant goods and services. These representatives participate with different weights in determining the final inflation rate based on consumption data. Specific prices are collected and averaged by professionals from all over the country and on the Internet in a representative way.

There are several weightings: in addition to the mentioned consumer price index (inflation), there is a so-called consumer price index for pensioners, in which e.g. the proportion of drugs is higher. The HICP (Harmonized Index of Consumer Prices) makes it possible to compare the inflation rates of the EU Member States, as it defines a common method and even takes into account national consumption weights / habits.

The inflation rate set by the CSO (4) and the HICP (5) differ only by a few tenths of a percent. Yet the HICP must be true because it is EU. Right, libsik? So then the calculation of the CSO is also true. For methodological or technical reasons, real estate prices are not included in these indices.

It is classified and weighted into chapters and main groups in the said approx. 1000 products / services (6, 7).

Hopefully, with one last breath, the “Why” Index also reported a set of sentences that pretended to be objective (8). The classroom part of obtaining a license was highlighted, a graph was drawn as if everyone were re-learning the TRAFFIC three times a year. Consequently, the weight of this item is extremely low. Most students learn to get the price of the TRAFFIC course and exam anyway (9).

The same article (8) cannot deny the stagnation / decline of petrol prices, but they highlight apples. As a reassurance, the higher price is not pocketed by Sagittarius or zorban, but simply by the frosts of spring that ruined much of the crop, and even the mild winter and rainy May put a shovel on it (10). This is a gift.

Another typical libsi mantra is that rents are not given sufficient weight (1.2%) in the price index (8) and are even much higher in many other countries (Austria 4.6%, Germany 10.7%). But what is the reason why Romania includes renting even less than ours (0.5%)? The fact that the population of Hungary insists on owning a home (11), as 86% of the population live in their own home (of which 15% live on loans), compared to 55% in Austria and 52% in Germany. 7-9% of tenants rent on a social basis and only 4-5% on a market basis. Wow. On the other hand, almost everyone in Romania has their own property, which is why this item is given so little weight to them.

It is a typical liberal scam to emphasize a small negative slice of circumstances and to suggest that everything is bad as a result, especially in Hungary. So they do not present the whole picture, but highlight statements and facts that may even be true in themselves, but lose their meaning when viewed as a whole.

The annual increase in rent (7) in the first months of the year was around 10%, while the increase was halved due to the coronavirus. The same can be seen for the 33% increase in fruit prices and the increase in the management course. Looking further afield, food prices rose by 8% overall in June compared to a year earlier, housing-related expenditure rose by 1.6%, while transport costs fell by 5.1%, and so on. Taking all components into account, inflation was 2.9%.

If we look back at (6) and (7), we see that the weight of renting an apartment has increased over the years, as the proportion of own home ownership has decreased. The weight of the overhead has been steadily declining, although if the CSO wanted to cheat, it would leave the weight unchanged here, because the overhead cost would be pretty much stagnant. Fuck, isn't the CSO cheating after all?

It is important that there is no average consumer, everyone has different consumption habits. That is why one may feel that life is not going to become more expensive, and that others are visions of hyperinflation.

Because the weights are public, anyone can calculate their own inflation rate (12) even if there is no official application for that purpose.


Tags: Economy  Living