Why do they insist on "core inflation" indicators?

[buycitgo]

they don't include energy costs, and what else

for example, Lehrer/Bush shill Gwenn Ifil just said, that the core rate of inflation only increased .2 percent last month, as opposed to the .6 percent everybody else is quoting

what's the deal with that? does that mean we get to go back to the gas stations, the grocery stores, the drug stores, etc., and get out money back for those items?

who do they think they're kidding?

huh?

hahaha......now they're doing a story on Greenspan, who should be wearing an orange jumpsuit

[Robbien]

1. The justification is that energy and food are too volatile

The two rapidily change due to circumstances that do not accurately reflect consumer prices.

It sounded like bull the first time I heard that crap, and it still does.

[buycitgo]

2. zackly.....they're BSing about this very thing on Lehrer

claiming inflation picking up only gradually

right

like THIRTY THREE PERCENT increase in gas prices since december?

cheese up 93 percent

milk up over 100 percent

they mentioned that gas prices might spill over into the rest of the economy, then ignored it, while bullishing up on the economy

MIGHT spill over?

why don't you get some BALANCE on there, you dicks?

[jayavarman]

3. I'm not sure

But I would get nervous if the metrics by which inflation were measured were messed around with too much. . . . . If inflation had been measured that way for decades, lets stick with it because it allows us to measure trends & compare 'apples to apples' when looking at economic cycles, etc . . .

I agree, though that it doesn't seem right- especially when most families buy food & gas alot more often than other things like cars, etc . . .

When it comes to big things like the census, the economy, environmental issues . . . . I'd rather the powers that be not change yardsticks!

If gov't changed the way they measure inflation you know it would be changed in order to manipulate the data politically. . . . Just like this guy on TV was attempting to do

Just my 2 cents

[buycitgo]

4. good point, but that's like saying we should maintain the idea

that the earth is the center of the solar system

their sanguine interpretation of the way things are going, inflationwise, is ridiculous

the effects of the drastic gas price increase won't be felt for awhile, as they ripple through the ENTIRE economy

look what it's doing to the airline industry, for just one example

trucking is another

[jayavarman]

5. I see your point

I wonder if they could retroactively redo all of the historical inflation data as well to include food & energy . . . .

That would be fine in my book

[Hammie]

6. It dampens out swings based on energy prices

In the long run, energy is accounted for in the price of everything.

[Egalitarian]

7. Are housing costs included in this "core" data?

[tritsofme]

8. Because raising interest rates will not stamp out inflation

caused by high energy prices.

It is more useful for the Fed to see what underlying inflation exists in the economy without the affects of often volatile food and energy prices.