The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: gpowell who wrote (36333)	7/27/2005 1:08:57 AM
From: Mike Johnston	Read Replies (1) of 306849

BLS specifically changes the basket when consumption changes due to inflation. CPI should measure price inflation and not changes in consumer consumption due to price inflation. Just because consumption drops and price rises it doesn't follow that the price change caused the consumption change - the opposite could be true. You lost me here. Are you really saying that a drop in consumption could cause an increase in price as opposed to an increase in price causing a consumption drop ? i think you meant to say : "Just because consumption drops and price rises it doesn't follow that the price change caused the consumption change -they could be unrelated"

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