Does it work like this?

[LOLyourFace]

My econ prof says annual inflation rate is about 4% a year.

That means, if I make $30,000 a year and get a raise to $31,200 next year (4% increase), my income didn't technically increase at all right? How does that work in a practical real world sense?

 

[HappyPuppy]

Addressing your first statement, your econ prof is full of stinking shyt. Inflation, at least at this time, is nowhere near 4% in the U.S.

 

[LOLyourFace]

then? and where can I look this up (statistic facts)

 

[vi edit]

I'd say between 1% and 3%, is more accurate. 4% is pretty freaking high.

 

[m2kewl]

Originally posted by: HappyPuppy
Addressing your first statement, your econ prof is full of stinking shyt. Inflation, at least at this time, is nowhere near 4% in the U.S.

no kidding! here's a link to inflation rate : linky!

 

[vi edit]

That 4% raise (1%, 3%, or whatever) is called a standard of living raise. It's what some employers give out on an annual basis to keep up with inflation.

 

[dirtboy]

The last time I calculated annual inflation, over time it has been 4.23%. Today inflation it isn't that high, but it has averaged out to 4%. That works out in the real world, because prices of things should increase 4% to match your 4% raise.

 

[cmdavid]

hes about right.. there are the inflation rates for the rest of the world...