How’s that for a clickbait headline? (Not so good). Yesterday’s post on the interaction between keeper values and inflation generated a lot of great discussion. If you’re interested in that sort of thing, I recommend wading into the comments.
As one commenter noted, when calculating inflation, the industry standard is to use pre-inflation price times the sum of one plus the inflation rate. Or written another way: Post-inflation price = Pre-inflation price * (1 + inflation %). Said commenter thought I preferred: Post-inflation price = Pre-inflation price ^ (1 + inflation %).