It remains to be seen what the inflation rate will look like in several years time.
It's also difficult sometimes to know what the real rate of inflation is. Different governments use different formulae to calculate it, giving the impression that they prefer to fudge the numbers a little to make the situation appear less dangerous than it really is.
Isn't the rate of inflation calculated based on the price of essential products compared to the price of last year? I don't know how they can fudge numbers if other economists can see that.
Because each government can pick and choose which products they deem "essential".
The list seems to change rather often, generating confusion and raising suspicions.
But isn't there a standard procedure for it, something like an average price index for essential goods taken from the current rates, then compared to the rate taken from the year before?
There are at least three procedures for it, RPI, RPIH and CPI. And, even then, the accuracy of each of those is still questioned in certain circles. No one seems to be able to agree on which formula is most accurate. Plus, as I mentioned earlier, whichever procedure they use, they can also change the items they choose to base price increases on.