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After reading the definition of how the gas price factors into the CPI [0], I don't think fuel use is included because it's a price index, not a use index. As a
by TYPE_FASTER 4y ago
After reading the definition of how the gas price factors into the CPI [0], I don't think fuel use is included because it's a price index, not a use index. As average mileage improves[1], and WFH continues, I wonder if usage will either plateau or decline[2][3], resulting in the price of gas having less of an impact.
[0] - https://www.bls.gov/cpi/factsheets/motor-fuel.htm https://www.bls.gov/cpi/factsheets/motor-fuel.htm
[1] - https://www.epa.gov/system/files/styles/large/private/images/2021-11/2021-f-2.png?itok=nZ1arEcu https://www.epa.gov/system/files/styles/large/private/images..., from https://www.epa.gov/automotive-trends/highlights-automotive-trends-report https://www.epa.gov/automotive-trends/highlights-automotive-...
[2] - https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WGFUPUS2&f=W https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=W...
[3] - https://www.statista.com/statistics/188448/total-us-domestic-demand-for-gasoline-since-1990/ https://www.statista.com/statistics/188448/total-us-domestic...
- gruez 4y ago>I don't think fuel use is included because it's a price index, not a use index. Theoretically this should be adjusted via lowering the basket weight for fuels (if consumption indeed does drop).