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Politics : Ask Michael Burke
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To: Knighty Tin who wrote (67460)9/10/1999 9:38:00 AM
From: Freedom Fighter  Read Replies (3) of 132070
 
Mike,

I understand some of the focus on the less volatile elements
of the inflation measurements. But aren't the core and non-core numbers interrelated to some degree.

In other words, if food and energy prices double, doesn't everyone in aggregate have less money to spend on the remaining items and thus cause them fall in price or rise less than they would otherwise rise?

If so, the only number that should really matter is the overall inflation number in a sort of moving average that levels off the volatility effects.

Wayne
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