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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

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To: mister topes who wrote (2304)	11/29/1998 9:51:00 PM
From: Investor2	Read Replies (1) of 15132

"After this year's revision to its item structure and expenditure weights, the CPI is set to undergo another methodological change. This is one of the most important changes to the CPI ever conducted since it incorporates a new method of calculation rather than just updating the basic formula. ... ... The result of this revision will be fairly substantial, even in the context of the present low-inflation environment. Since the BLS publishes an experimental CPI, which employs the new technique, it is easy to quantify this effect. A good rule of thumb is that this new method will be shave approximately 20 basis points from CPI inflation rates (see Chart)." dismalscience.com Best wishes, I2

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