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This year has quite simply broken the way the CPI works. They try not to re-weight items in the CPI year by year. Motor fuel is still 2.9% of the index. Transp
by AnotherGoodName 6y ago
This year has quite simply broken the way the CPI works.
They try not to re-weight items in the CPI year by year. Motor fuel is still 2.9% of the index. Transportation, including air travel is still 5% of the index. Demand and price for these has crashed this year. They still keep the same weighting year in year out since the items in the CPI aren't meant to be changed and re-weighted every year. (See the Oct 2019 vs Oct 2020 column)
https://www.bls.gov/news.release/cpi.t01.htm https://www.bls.gov/news.release/cpi.t01.htm
- User23 6y agoStated bluntly, low CPI is just a function of Chinese dumping and has been for the past couple decades at least.
- howlgarnish 6y agoDemand for air travel has collapsed. Prices have not, because airline have correctly figured out that the few people still flying (particularly internationally) are doing so because they have to and will pay top dollar if they need to.