Well it depends on how much each of the slices is part of the overall basket.
As you probably seen from one of the references, if rent costs increased 40% in most US cities and that represent a major part of a household costs, the fact food
who is normally a small part of household cost "only" increased 8% is of little consolation.
Of course the comment was made without understanding the individual household scenario of xxpor. But the overall argument that, what would normally be considered a very high salary increase, means for some households nowadays,
a real loss of purchasing power, I would argue, it still stands.
The baseline belief would be that their cost mix is about the average, which is up a little more than ten percent. But you flatly asserted that they had lost purchasing power. This is unlikely. You should not make such sweeping statements without first identifying some rational basis for them.
I think you missed the gist of the comment, so I am not sure I will be able to clarify further, but I will try one last time.
A salary raise of around 40%, is an outlier for most "at will employees". Maybe with the exception of when transferring jobs. For the composition of expenses of most households, energy, transport and housing, are some of the biggest part of most households.
With rent costs increasing in the 40 to 45%, energy in the 30 to 35%, and other costs in similar ranges, AND still increasing, what normally would be a
great salary increase is supposed to be diluted in the current inflation figures. These are STILL a up trending direction ( Can hardly wait for the April figures)
I provided the data to support it, and you seemed focused on the fact I did not ask xxpor to layout his private life, before making the comment? :-)
For most families in the US and Europe salary increases in the 35% to 40%, still mean loss of purchasing power if you take an analysis looking at a the last 3 years and the next 3 years. Assuming that is a one off event every 3 or 4 years.
With the current increases, even that type of salary change would be already diluted.
That is what the highest inflation of the last 40 years means, and that was the gist of the comment.
European reference: "Strongest inflation in almost 40 years"
As you probably seen from one of the references, if rent costs increased 40% in most US cities and that represent a major part of a household costs, the fact food who is normally a small part of household cost "only" increased 8% is of little consolation.
Of course the comment was made without understanding the individual household scenario of xxpor. But the overall argument that, what would normally be considered a very high salary increase, means for some households nowadays, a real loss of purchasing power, I would argue, it still stands.