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2010/2011 Consumer Price Index: Indicated inflation
Posted: Sat Mar 19, 2011 4:27 am
by zbarlici
Heres is a link criticizing the US government-issued CPI
http://moneymorning.com/2011/03/17/hidd ... you-think/
I don`t live in the states, but apparently the government is supposedly pegging the inflation at 1%. If you scroll down the page in the link i posted(to the price comparison table) it is actually at around 9%. Is this true?
Posted: Sat Mar 19, 2011 11:10 pm
by hanelyp
The "core" inflation rate excludes "volatile" food and energy prices, and is weighted heavily with the same real estate that underwent a massive correction downward recently. Has inflation peaked? Not so long as the Fed is printing funny money and the regime is spending it like mad.
That article needed a better proofreading, it states food and energy are included in the first paragraph, then correctly states them as excluded in the second.
Time to bring back the misery index, and use real counts of inflation and unemployment rather than the doctored numbers of the official rates.
Posted: Sun Mar 20, 2011 12:09 am
by zbarlici
the exclusion of energy and food prices makes sense for the reason you stated, but on the other hand these are things you cannot do without. Hmm... the 1% inflation ratio makes sense now. Thanks!
Posted: Sun Mar 20, 2011 1:59 am
by zbarlici
Perhaps the article does not need a better proofreading. The writer is just implying that, as you also stated, that core inflation is not a reliable measuring stick for "realflation". So having said that it probably serves more as a tool for market analysts etc as it doesnt reflect real life price changes..