Inflation: the next big deception....

(1/8) Inflation is an ever-present force in our lives, but the numbers reported by governments may not tell the full story. Well well that is true - Could inflation be the next financial bubble in the making?

How Governments Report Inflation

(2/8) Governments rely on metrics like the Consumer Price Index (CPI) to measure inflation, but the numbers can be deceiving. With adjustments like hedonic quality or substitution, inflation may appear lower than what consumers are actually experiencing. Are these figures masking the truth? ??

The True Cost of Living

(3/8) While the CPI focuses on a theoretical basket of goods, the real cost of essentials like housing, healthcare, and food has been rising sharply. Everyday expenses show a much higher rate of inflation than official reports suggest.

People are feeling the squeeze, even if the data says otherwise. Please use comments section for my perceptions feedback !

The Dollar's Hidden Role

(4/8) Behind this inflation illusion lies the U.S. dollar. As the world’s reserve currency, the dollar holds immense power, but the U.S. has been printing massive amounts of money, especially post-2008 and post-2020 crises. This money-printing fuels inflation. I think this will remain in our lives to the very extent.

Exporting U.S. Inflation Globally - The Real Problem!!

(5/8) The U.S. can export its inflation to other countries due to the dollar's global dominance. Countries that rely on dollar-denominated commodities or debt feel the impact as U.S. inflation drives up their costs.

The Real Victims of Inflation

(6/8) While inflation is a global issue, lower-income households or say average income people of emerging market mostly bear the brunt of the impact. Rising costs for essential goods and stagnant wages create financial strain.

Is Inflation the Next Financial Crisis?

(7/8) Just like the dotcom bubble and the mortgage crisis, inflation may be the next systemic problem lurking in plain sight. If left unchecked, the divergence between real and reported inflation could lead to severe economic consequences, especially for those without assets to hedge against rising costs.

Conclusion: What’s Next?

(8/8)There is no conclusion - The people have always been the spectators of the Scams/ bubbles/ deceptions. However, the inflation narrative needs to be reexamined as the gap between real life and reported numbers widens, the risk of financial instability grows. Will inflation be the next economic collapse waiting to happen? Only time will tell.