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Strategies & Market Trends : Longer-Term Market Trends

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From: AllansAlias5/18/2008 7:06:48 AM
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OT, Inflation:

I have become increasingly vexed, maybe even a bit angry, at the recent price-related data being released by governments, and the US data in particular. The releases related to inflation the past months have been comical, and sad.

This exclusion of "volatile food and energy" prices is at the heart of it. I understand statistics theory pretty well, and I can understand excluding data points or smoothing data points that are truly "volatile", but food and energy are not -- they just keep going up.

I have many friends whose wages are indexed to "cost of living" statistics, so that is the sad part, since it is the government indirectly setting wage increases for corporations.

Then, I ran into this graph this morning:
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