The Stahler Inflation Pain Index Helps Consumers Understand the Inequality of Inflation

The Stahler Inflation Pain Index Helps Consumers Understand the Inequality of
Inflation

CHICAGO, Aug. 5 /PRNewswire/ -- Consumers are becoming increasingly
suspicious of the traditional metrics used to measure the state of the
nation's economic health. That's why Steven Stahler of The Stahler Group
commissioned the Chicago-based survey-research firm Leo J. Shapiro &
Associates (LJS) to develop the Stahler Inflation Pain Index, a research-based
statistical tool that measures what the government's metrics can't -- the
emotional and psychological impact of the U.S. economy on people's daily
lives. The Inflation Pain Index is funded by The Stahler Group, a financial
advisory firm. Often, government statistics are devised to serve a specific
purpose, and do not contain any explanation or data. However, the Stahler
Inflation Pain Index is a quarterly report that provides a direct measure of
the impact of a fluctuating economy on all types of people.
Consumers may read in the news that the U.S. inflation rate is 3% or 4%,
but this number is meaningless without further data or a more personal
connection. In the first quarter of 2008, the average Inflation Pain Index
rose to 123, the highest level recorded in three years. Back in 2005, the
average Pain Index of Inflation was less than 100, but it has been growing
steadily since.
In 2005, The Stahler Group employed LJS to begin polling consumers to
create what is now called the Inflation Pain Index, a straightforward
statistical measurement of how Americans are faring financially, based on the
amount of pain they feel as a result of their economic status and situation.
The report is compiled from personal interviews conducted by telephone with
5,400 households annually at the rate of 450 households per month. The
questions asked of survey respondents are designed to assess how hard or easy
it is for people to achieve their standard of living.
For example, we all know that gas prices are going up and that the rising
cost of oil is causing a ripple effect of price increases in virtually every
sector of the economy, especially food. Significantly, the core inflation rate
quoted in the news excludes food and energy costs, but consumers don't have
the luxury of ignoring rising gas and food costs. Indeed, though the
"official" inflation may be hovering around 4% now, many middle-class families
in America are finding that they are paying 10% to 20% more for the same goods
and services this year as they did last year, and if they are unfortunate
enough to be tied to an adjustable rate mortgage, that percentage can rise
significantly higher.
The result: pain.
Additionally, the Index indicates quite clearly that the bite of inflation
is directly related to household income. Among households with incomes of
$30,000 or lower, the Index was 153 in the first quarter of 2008, compared to
a relative pain index of 84 for households earning $100,000 or more. More than
half the households in America subsist on less than $50,000, experiencing a
pain index of 129 or higher.
When the Inflation Pain Index measurements began, homeowner equity
provided a significant cushion against the pain of inflation, but since then
the mortgage meltdown has all but dissolved this cushion, exposing homeowners,
particularly those with adjustable rate mortgages, to more pain. In the first
quarter of 2008, homeowners making less than $30,000 a year recorded the
highest Inflation Pain Index ever: 161. Homeowners making more than $50,000
reported experiencing roughly the same amount of pain as non-homeowners in the
same income category, indicating that homeownership itself no longer provides
protection from the pain of inflation.
The Stahler Inflation Pain Index is published quarterly by Leo J. Shapiro
& Associates. For more information contact:
Steve Stahler
THE STAHLER GROUP
153 W. Ohio St, Suite 210
Chicago, IL 60610
225-214-4210 Office
312-576-6250 Cell
steve@thestahlergroup.com

SOURCE Steven Stahler; The Stahler Group

Steve Stahler, +1-225-214-4210, cell, +1-312-576-6250,
steve@thestahlergroup.com