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Technology Stocks : Rockwell-Spins off Conexant (CNXT) -- Ignore unavailable to you. Want to Upgrade?

To: David W. Taylor who wrote (1036)	5/10/2000 1:46:00 PM
From: MeDroogies	Read Replies (1) \| Respond to of 2013

Right, but it isn't considered a structural portion of the inflation number due to its volatility. Structural inflation is inflation that is caused by constraints in the system (wages/housing, etc). Energy, however, is not typically a market-based product due to the cartels that manage production. As a result, the volatility of its price is generally considered a non-factor in structural considerations (core inflation). Its effects will alter the rates of most core inflation components, which is why it isn't included there. This isn't to say it doesn't have an effect, but that its effect is often double counted, hence is left out of the core rate. Besides, energy prices, while up, have stabilized and will likely fall as OPEC members jockey for market share.