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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: SilentZ who wrote (767117)1/30/2014 8:33:17 PM
From: Broken_Clock  Read Replies (1) | Respond to of 1577076
 
Tell that to your wife when you hit the altar. :)

We're talking "inherent" value…but I'm not sure what it has to do with how inflation is calculated.

In economics, inflation is a persistent increase in the general price level of goods and services in an economy over a period of time.[1] When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4]

Based on the above definition, the inflation rate should be primarily a measure of things of necessity, i.e. survival items would have the top billing over computers. Food and energy actually reflect inflation better than anything else. Which is why the gubbiement doesn't want those items counted.