Re: CPI a fraud?

On 12 Sep 2005 09:28:42 -0700, "Negloid" <negloid@xxxxxxxxxxx> wrote:

>Brablo wrote:
>> The aspect(s) of CPI that I don't understand one bit is that volatile
>> food, and energy prices are not included. Moreover, I *think* that
>> rent prices are not included. Excuse me, but these 3 things are my
>> biggest monthly expenditures.
>>
>> Gas prices are UP UP UP. Rent/Real Estate is UP UP UP as well. I'm
>> not sure about food.
>
>Rent is included.

In a sense....

>Energy and food are not really excluded, but just
>reported seperately. Typically reporters will list both numbers. The
>CPI provides both numbers because energy and food are very volatile.
>As I pointed out in my last post, if the numbers swing around wildly
>each month because energy is up 10%, then down 5%, then down 10%, then
>up 20%, you're going to have a CPI that is meaningless for any
>short-term evaluation.

Nope. It will be _accurate_.

>Economists consider both numbers--energy/food included and excluded.
>If energy has been rising for a while, they will worry about
>longer-term inflation in other sectors. No one is ignoring anything.

?? ROTFL!! Right, in the sense that concealing is not "ignoring."

It's not like the official government statisticians have not been
caught with their hands in the land rent cookie jar before, you know.
Like the calculation of corporate landholdings' aggregate value that
somehow ended up _negative_...

-- Roy L
.

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