2 ms·
Naive question: why couldn't the government use something like a 12 month moving average? That way we'd keep the variable, but limit the weight of its volatilit
by lr4444lr 4y ago
Naive question: why couldn't the government use something like a 12 month moving average? That way we'd keep the variable, but limit the weight of its volatility.
- asperous 4y agoYou can do this across the whole index if you want already, and many sources do report annual changes only: https://fred.stlouisfed.org/series/FPCPITOTLZGUSA https://fred.stlouisfed.org/series/FPCPITOTLZGUSA As for why a moving average isn't used for this one price, if they did it that way prices would be 12 months old and wouldn't reflect the most up-to-date economic conditions.