Very funny! Well you take the CORE inflation rate. You know you remove the inimportant stuff like energy costs and food. Who needs energy and food anyways ! And voilà you have a measured hyper phoney-baloney statistic that means nothing except a BIG FAT LIE. Inflation is accelerating. But politicians, economists and bankers love this CORE inflation rate, even if it is rotten at the core !
Marc Authier | 09.26.05 - 10:58 pm | #

Undoubtedly, it is in the Fed's interest to get the reported inflation rate as low as possible for many reasons. Doing this by removing fuel and "other costs" only partially gets them to their goal.

Whatever is left in the core rate still has an energy compenent in it, and at least this piece will be picked up in their spurious numbers. For example, even if chinese made tv's and t-shirts are deflating in value all the time (at least as long as the dollar is pegged), the retail price which also includes shipping and retailing - not to mention the raw material cost - will all reflect the increased energy prices to bring these products all the way to the consumer.....

so the fed is being dishonest, but not entirely in the way that one might think.
alec gimurtu | 09.20.05 - 11:03 pm | #