Since no one seems to trust the PPI, why don't they replace the management team responsible for determining how to calculate PPI and install someone who can correct the PPI formula to reflect reality?
SF housing increased by 90% in 5 years. Across the board, America has experienced a boom in housing prices.
Yet, the CPI doesn't reflect the increases in housing across America, which is the average family's largest cost.
Borrowed from another thread:
"inflation has been vastly understated recently. The main factor holding inflation back is the category "owner's equivalent rent", also known as the cost of your home. For some reason, the CPI doesn't reflect much of an increase in the price of a home over the past couple of years. I don't buy that at all. And that's about 40% of the CPI. In addition, the Fed's preferred measure, CPI ex-food and energy, is flawed. In the current environment, with dollar weakness being a primary source of inflation, commodities is the first place inflationary signs show up. For the Fed to ignore this in its primary considerations is folly."
Message 19942189
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In the private sector, we'd fire the management team that produced results that were wrong or untrustworthy.
Does the govt operate under different rules? Someone trying to keep their govt job at the risk of America's well-being? Someone trying to make their results look good, Enron-style? Who is the person in charge of this incorrect and untrustworthy PPI formula?
Regards,
Amy J |
