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To: GraceZ who wrote (56126)3/17/2006 6:42:54 PM
From: Mike Johnston  Read Replies (1) | Respond to of 110194
 
What you say is true, but the crux of the matter is that CPI is understated. So if 1% lag to CPI causes pain, a 3-4% lag to a true rate of inflation is that much worse.



To: GraceZ who wrote (56126)3/17/2006 6:55:26 PM
From: Mike Johnston  Read Replies (1) | Respond to of 110194
 
that their paychecks are not going up at the same rate as CPI inflation

But that is irrelevant to the fact that CPI is understated.

How can someone draw a conclusion that because paychecks are not going up fast enough, CPI is not understated ? (WSJ did)

Maybe the paychecks are not going fast enough because CPI is understated ?