It's worth noting that the yield on these sorts of things are quite low. All of the eTIBs maturing before 2035 currently have negative yields, meaning that you'd actually be paying a small fee for the inflation protection. The US TIPS yields are also <0 until 2023.
A couple of small known issues I haven't fixed up yet:
* I'm not correctly taking into account the number of coupon payments in the current year and final year for each bond, just assuming it's 4 like every other year.
* Prices are updated manually, I've got some code that scrapes the ASX to get new prices, just needs to be hooked up.
I'd be particularly interested in feedback on usability, or ease of understanding from non-finance experts. I've added a bunch of long-winded copy that tries to explain what this is for, but I'm not sure it gets the point across clearly.
Once this is a bit more polished, I'll publish a version that does the same calculations with US TIPS instead of Australian eTIBs.
Despite all the things I consume getting radically more expensive (food gas shelter) and a huge expansion of the money supply the official inflation numbers are extremely low! I bought PHN650 inflation linked bond fund when QE started thinking that it must result in inflation; I was wrong. However inflation is calculated they are leaving the goods I consume out of their basket. The economist should get a new Big Mac index, maybe an organic meal index.
What do you expect when a government agency calculates inflation, while other government agencies has liabilities pegged to inflation (Social security, TIPS)?
Sure, they're different agencies, but that doesn't matter in the slightest. It's like two departments in one company.
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[ 2.4 ms ] story [ 35.9 ms ] threadIt's worth noting that the yield on these sorts of things are quite low. All of the eTIBs maturing before 2035 currently have negative yields, meaning that you'd actually be paying a small fee for the inflation protection. The US TIPS yields are also <0 until 2023.
A couple of small known issues I haven't fixed up yet:
I'd be particularly interested in feedback on usability, or ease of understanding from non-finance experts. I've added a bunch of long-winded copy that tries to explain what this is for, but I'm not sure it gets the point across clearly.Once this is a bit more polished, I'll publish a version that does the same calculations with US TIPS instead of Australian eTIBs.
Thanks!
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Sure, they're different agencies, but that doesn't matter in the slightest. It's like two departments in one company.
According to Shadowstats, which calculates inflation using the 1990-based CPI methods, inflation currently is at 4.5% per year. http://www.shadowstats.com/alternate_data/inflation-charts