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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: gpowell who wrote (36328)7/26/2005 11:44:21 PM
From: Mike JohnstonRead Replies (1) | Respond to of 306849
 
The CPI is supposed to measure prices of what people consume.
But, you should not adjust the basket, based on changes that are caused by the very changes that the index is supposed to calculate.

The reason is ,that the index then fails to capture the price changes which supposedly forced them to adjust the basket.