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i am going to repeat a previous post i have made - the cpi is very inaccurate on the short haul, but seems okay when you compare say a 10 year period.
Aug 22 20:36 pm
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All Comments by Steven Hansen »The New CPI Is Better, More Precise Than the Old CPI [View article]
Dr. Perry, there is nothing wrong (and to me very educational) with what you have presented. but the average american is spending 10% or more today than they did a year ago - or they have cut their household expenditures by 10% to make ends meet. it is obvious to the average wage earner inflation is in double digits.
a short term index centered on food, clothing, and energy should be issued. the cost of shelter is fixed in the short haul for 99% of the people. the rest of the index is unnecessary as it can be classified as discretionary purchases.