3 ms·
Isolated data points aren't really worth analyzing - something like a running 6-month average makes more sense. See this 2009 blog post on how to inflation-adj
by photochemsyn 4y ago
Isolated data points aren't really worth analyzing - something like a running 6-month average makes more sense. See this 2009 blog post on how to inflation-adjust current prices/revenues to those from decades before:
> "For this exercise, we’ll use the annual average CPI-U values for 1973 (44.4) and 2008 (215.303). Because the CPI-U includes relatively volatile items such as food and fuel, I tend to avoid the monthly values with their fluctuations. If you want to adjust to the most recent data available, consider averaging the most recent six months of CPI-U values."
https://anthonydebarros.com/2009/11/01/adjusting-for-inflation-guide/ https://anthonydebarros.com/2009/11/01/adjusting-for-inflati...
This is similar to analyzing climate trends, where you really want to look at 5-year running averages (possibly 10-year). Generally, 'response time of the system to forcing' is what matters, in both cases.
- abeppu 4y ago> Isolated data points aren't really worth analyzing - something like a running 6-month average makes more sense Isn't the YoY inflation definitionally equivalent with running (geometric) mean of the past 12 (annualized) monthly increases?