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A more cynical take on this is that the remaining goods in the basket often have "adjustments" that can be made - for example, most technology gets discounted b
by pclmulqdq 4y ago
A more cynical take on this is that the remaining goods in the basket often have "adjustments" that can be made - for example, most technology gets discounted because the new version is faster (in top-line performance) than the old version. That adjustment process allows them to create a lower-noise metric, with the side effect of also creating an inflation narrative that is convenient (unless things are well and truly out of control, like they are now).
- fdr 4y agoYou could say that, but then you have to explain why all my commodity investments seem so terrible. This is mostly a joke, as I don't trade commodities; however, if BLS is juking the stats year over year with some agenda or other, basic inputs should have a steeper nominal trend line than they do, noisy as it is.
- SilasX 4y agoExactly. Like the infamous remark that inflation is being canceled out by faster iPads: https://www.reuters.com/article/us-usa-fed-dudley-ipad-idUSTRE72A4AC20110311 https://www.reuters.com/article/us-usa-fed-dudley-ipad-idUST...