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The Fed CPI excludes food and energy. So when milk goes from $1.50 to $3.60 per gallon over 20 years, they pretend that never happened. Or when gasoline goes
by shingen 15y ago
The Fed CPI excludes food and energy.
So when milk goes from $1.50 to $3.60 per gallon over 20 years, they pretend that never happened.
Or when gasoline goes from $0.75 to $3.59 over 30 years, they pretend that never happened.
They pretend you don't need to eat food or drive anywhere.
- Aloisius 15y agoUh, the Fed CPI does include food and energy prices. The government does have a separate "core" inflation number which excludes food and energy prices, but the regular CPI number includes food and energy and has forever. Specifically, the CPI-U includes food & energy, but economic analysts and policymakers like to use the CPI-U for All Items Less Food and Energy because of the volatility of commodities. The CPI-U however is still available and was last sitting at 3% for 2011. Again, that's with food & energy. http://www.bls.gov/news.release/cpi.nr0.htm http://www.bls.gov/news.release/cpi.nr0.htm Not only that, but the numbers that exclude food and energy make inflation look higher than when they are included.