3 ms·
If the goal of excluding gas from the inflation analysis is to eliminate its volatile pricing, understanding its relationship to inflation should use the same e
by eyelidlessness 5y ago
If the goal of excluding gas from the inflation analysis is to eliminate its volatile pricing, understanding its relationship to inflation should use the same exclusion to calculate inflation, and a moving average could smooth the volatility for a clearer trend line. The methodology used here essentially provides no meaningful information as the chart clearly shows. The only way that visualization is accurate is if the huge spike in average gas prices coincided with a huge spike in general inflation measures (it didn’t) or a huge reduction in gas expenses as a proportion of spending (which didn’t occur).