This is a project from Israel Munoz, one of the hosts of Build With Bitcoin Podcast. The podcast is generally good, often from the perspective of angel/startup investors. They often have cool guests.
Munoz created something called the Deflation Index that measures how much cheaper things should have gotten. They made a little site for it and launched a newsletter (which feels a little AI).
The costs of the four fundamental building blocks of the modern economy have all decreased dramatically over the past 35 yearsThe costs of the four fundamental building blocks of the modern economy have all decreased dramatically over the past 35 years
If these building blocks became 96% cheaper, why doesn’t everyday life feel 96% cheaper?If these building blocks became 96% cheaper, why doesn’t everyday life feel 96% cheaper?
Over the same period (1990-2024), the U.S. M2 money supply expanded by +550%, averaging 5.7% annual growth.
What’s NextWhat’s Next
This is just the beginning. In 2026, we’re launching:The Deflation Index exists to answer one fundamental question: If technology creates this much abundance, where does it all go?
- Public API for developers, researchers, and investors
- Enhanced sector coverage and granularity
- Investment-focused analysis of sectoral deflation trends
- Community-driven improvements to methodology and data
I do think this is a thought provoking question.
In most areas of life for which the squeeze of inflation is felt, the price rises are generally due to artificial scarcity: housing, education, health.
Is inflation really a runaway problem in other sectors? It seems to me that for the other areas where inflation is felt, like groceries and energy, the price rises are only a more recent phenomenon probably driven by near-term geopolitics.
I'm definitely not sold on their choices for key metrics of each sector.
There's also an (implicit) assumption that wages would have stayed flat, absent inflation, but it's not clear why wages wouldn't deflate along with the other inputs.