My limited understanding of inflation calculations is that this should result in a increase in inflation as we're getting less product for the same price.
I read a long time ago about some quirks of the inflation calculations:
Say 27" TVs are part of the basket of products, but it's no longer so easy to buy a 27" TV, so they pick up the next size up, say 32" and the price is the same as for 27" but because this is a better TV (bigger for sure), it is deemed that the price of TVs have fallen as your buck can buy more TV.
I would dearly love for somebody with knowledge of the subject to confirm/deny/clarify the above
I read a long time ago about some quirks of the inflation calculations:
Say 27" TVs are part of the basket of products, but it's no longer so easy to buy a 27" TV, so they pick up the next size up, say 32" and the price is the same as for 27" but because this is a better TV (bigger for sure), it is deemed that the price of TVs have fallen as your buck can buy more TV.
I would dearly love for somebody with knowledge of the subject to confirm/deny/clarify the above