> Consider this huge defect in the commonly-cited one: There are multiple types of CPI because they measure different things, and they each have pluses and min

> Consider this huge defect in the commonly-cited one: There are multiple types of CPI because they measure different things, and they each have pluses and minuses. The reason why Core CPI is useful is illustrated by the orange and blue lines in the first graph: * https://www.economicshelp.org/blog/2587/inflation/difference-between-cpi-and-core-cpi/ https://www.economicshelp.org/blog/2587/inflation/difference... Good luck trying to policy with the orange (non-Core, which has food and energy) line. Or the red line in Chart 1 of: * https://www.frbsf.org/research-and-insights/publications/doctor-econ/2004/10/core-inflation-headline/ https://www.frbsf.org/research-and-insights/publications/doc... Food and energy are heavily dependent on commodity prices, which can swing widely: one month the Fed would be cutting by 3% and the very next month raising by 4% if they followed non-Core CPI (versus PCE). The Bank of Canada, who sets rates in Canada based on StatCan data, looks are three different CPI measures: * https://www.bankofcanada.ca/rates/indicators/capacity-and-inflation-pressures/inflation/ https://www.bankofcanada.ca/rates/indicators/capacity-and-in... * https://www.statcan.gc.ca/en/statistical-programs/document/2301_D63_T9_V2 https://www.statcan.gc.ca/en/statistical-programs/document/2...