4 ms·

This isn't even remotely true. You can see what goes into the CPI, and food is the #2 category after shelter. Motor fuel is included in transportation. https:/

• all2 4y ago
  Now I'm confused. [0] states that food and fuel are exempt for the "Core Inflation" metric calculation because they are historically volatile. > Core inflation is the change in the costs of goods and services but does not include those from the food and fuel sectors. This measure of inflation excludes these items because their prices are much more volatile. It is most often calculated using the consumer price index (CPI), which is a measure of prices for goods and services. > The Fed prefers to use the PCE index rather than CPI since PCE tends to provide inflation trends that are less affected by short-term price changes. Also, the Bureau of Economic Analysis (BEA), a division of the Department of Commerce, calculates the change of prices by using existing gross domestic product (GDP) data, which helps to determine an overall trend in prices. [0] https://www.livetradingnews.com/what-is-core-inflation-and-why-food-fuel-are-exempt-211633.html https://www.livetradingnews.com/what-is-core-inflation-and-w...
  • rdtwo 4y ago
    The cpi and other inflation metrics get messed up by hedonic adjustment and improper weighing of the baskets. Sometimes just looking at the M2 money supply is a better estimate. https://fred.stlouisfed.org/series/WM2NS https://fred.stlouisfed.org/series/WM2NS Significantly more money chasing the same amount of goods= inflation