What's interesting is your post contains opinions, yet no facts to back up your position. This doesn't make your post wrong, it's only meant to serve as a helpful observation.
Compare this to the post made by a former WS analyst who substantiated his opinion with information here:
"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
RE: but why bother?
You make the incorrect assumption that people aren't influenced by facts. Since others are spending their valuable time providing facts and information to the thread, it's unclear why you don't also. I think you tend to jump to the conclusion that people's positions are fixed, which is entirely incorrect. If new facts or data show an opinion along with its substantiating facts are wrong, this has value.
At a deep level, I think most of us would prefer if the PPI and CPI formula are correct. It's currently disturbing the number isn't as trusted as what it used to be. The data presented thus far, has indicated there is an error. (In fact, AG is indicating this as well and someone under BLS has indicated they are working to fix the formula error. Not just the calculations for January, but the actual formula.)
But if you believe the formula is correct, which would be good news, please share with us the facts.
The CPI doesn't appear to reflect the increases in housing across America, which is the average family's largest cost. What facts show the CPI is correct?
Regards,
Amy J |
