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Measuring inflation (CPI) on Morningstar...
Old 04-27-2011, 04:01 PM   #1
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Measuring inflation (CPI) on Morningstar...

...or any other site really. I've been on the federal government's website for their version of a 401k (called a TSP) and they show the growth of $100 (for a given fund) versus inflation. I'd like to be able to do the same on Morningstar, that is measure fund X against inflation. Does such a metric even exist
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Old 04-27-2011, 04:05 PM   #2
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I don't know if any sites do it for you, but the calculation isn't that hard to do yourself. Here is the official CPI index . . .

ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt

You can calculate the average annual change in the index over any given period and compare it against the performance metrics for whatever fund you're looking at.
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Old 04-28-2011, 05:54 AM   #3
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Originally Posted by Gone4Good View Post
I don't know if any sites do it for you, but the calculation isn't that hard to do yourself. Here is the official CPI index . . .

ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt

You can calculate the average annual change in the index over any given period and compare it against the performance metrics for whatever fund you're looking at.
Then if you are retired and want a full time job (beside posting here) you can find a thousand different blogs, calculators, and crazy internet rants, helping you figure out what the real inflation rate is vs what the government says it is.
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Old 04-28-2011, 06:45 AM   #4
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Then if you are retired and want a full time job (beside posting here) you can find a thousand different blogs, calculators, and crazy internet rants, helping you figure out what the real inflation rate is vs what the government says it is.
True.

Of course, if you forecast/track a budget, it's very easy to calculate your "personal rate of inflation" year over year. That's the only measurement IMHO that counts, regardless of any "published facts" in the matter ...
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Old 04-28-2011, 02:03 PM   #5
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Thanks for the replies. This is gonna be hard to explain just by typing...so if I want to calculate inflation say from 10 years ago until present, how do previous years factor in Or do they It's the same question I run into when looking at other mutual funds. For example a fund NOW is outperforming the S&P, BUT that's only true if (and only if) I put money in let's say 10 years ago. If you change the timeline, say to 1, 3, 5 year(s), the performances changes, it might be lower. I might be asking 2 separate questions here but I guess the way I see it is that past inflation is also factored in to current inflation, correct

This would be so much easier if I could sit down with someone and fool around on Morningstar for a while.

I hope I'm explaining my questions clearly enough.
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Old 04-29-2011, 06:40 AM   #6
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Then if you are retired and want a full time job (beside posting here) you can find a thousand different blogs, calculators, and crazy internet rants, helping you figure out what the real inflation rate is vs what the government says it is.
Been there, done that. When you go back and inflate historic prices using the CPI index, many come remarkably close to the prices on store shelves today with some higher and some lower. Exactly what you'd expect to see with any average.
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