It remains absurd to me that the many ways inflation is measured and presented for the purpose of its impact on regular people is based almost entirely on its impact on funds with no meaningful component reflecting the impact on the overwhelming majority of distinct legal entities impacted by it.
My opinion is that if there are changes to monetary policy based on the effect of inflation, the policy should be centered on maximizing the outcome for the majority of distinct legal entities (ie overwhelmingly individuals) not maximizing the outcome for capital. Because wtf are you optimizing policy for the wealth generation of an overwhelming minority of the entities impacted by that policy?
This might help. Idk enough about the topic to really interpret this in a helpful way.
"When people talk about inflation, they usually refer to ordinary goods and services, which is tracked by the Consumer Price Index (CPI). This index excludes most financial assets and capital assets. Inflation of such assets should not be confused with inflation of consumer goods and services, as prices in the two categories are usually disconnected. The prices of some goods and services such as housing, energy, and food do track closely with some financial assets."
I understand how inflation is measured vs things like the CPI or "basic costs for the overwhelming majority of entities and tax payers".
What I am saying is that it does not make sense that the measurement that influences policy, is the one that only meaningfully measures a subset of the economy that is the minority of the all people impacted by that policy, and as a result the policy decisions are made to benefit entities that represent a minority of participants in the economy, that already have a disproportionately large amount of capital, and for whom the real world impact of bad policy changes is negligible.
If a government wants to make policy choices that impact economic outcomes for everyone, the measurement used to control that policy should reflect the actual economic reality of the majority of entities impacted that policy, and the policy choices should be based on ensuring the best outcome for the majority of those impacted by the policy.
The current use of "inflation" as a driver for fiscal and monetary policy, is BS: the definition of inflation that is being used to drive policy is one that does not reflect real world costs for the overwhelming majority of entities impacted by the policy, and the targeted outcome is "best outcome for a minority subset of the economy that are not subject to any the monetary or financial stressors or margins experienced by the majority". If we insist on a definition of "inflation" that does not reflect cost inflation for the majority of entities, then monetary policy should not be determined by "inflation".
My opinion is that if there are changes to monetary policy based on the effect of inflation, the policy should be centered on maximizing the outcome for the majority of distinct legal entities (ie overwhelmingly individuals) not maximizing the outcome for capital. Because wtf are you optimizing policy for the wealth generation of an overwhelming minority of the entities impacted by that policy?