Seeking Alpha

Aug Consumer Price Index: +0.6% in-line with consensus, 0.0% prior. Core CPI +0.1% vs. +0.2%...

Aug Consumer Price Index: +0.6% in-line with consensus, 0.0% prior. Core CPI +0.1% vs. +0.2% expected, +0.1% prior.
Comments (9)
  • GaltMachine
    , contributor
    Comments (1135) | Send Message
     
    We don't eat or drive core inflation.
    14 Sep 2012, 08:41 AM Reply Like
  • jwbrewer
    , contributor
    Comments (317) | Send Message
     
    But you can by an iWhatever and suffer very little from price changes....according to Ben. Seriously, it is about time to update outdated stats such as the CPI.
    14 Sep 2012, 09:08 AM Reply Like
  • bbro
    , contributor
    Comments (9319) | Send Message
     
    Year over year CPI...1.69%
    14 Sep 2012, 08:58 AM Reply Like
  • Papaswamp
    , contributor
    Comments (2178) | Send Message
     
    Y/Y food stamps (SNAP) +3.3%
    14 Sep 2012, 09:16 AM Reply Like
  • GaltMachine
    , contributor
    Comments (1135) | Send Message
     
    bbro,

     

    This core CPI calculation is bs.

     

    Anybody that shops for food or buys gas, knows that the prices of those necessities has risen precipitously over the past year and the past 4 years.

     

    Just take a look at a basket of staples: milk, eggs, bacon, orange juice, bread, steak, etc. The price increases are staggering and I shop at BJ's which always does it best to keep prices at the lowest possible level.

     

    The problem with CPI calculations based upon hedonics is that they ignore the real-world experience of the 90% people who aren't rich.

     

    If prices don't increase from their currently elevated levels we will have no inflation in the future according to the calculation but lo and behold everything is way more expensive than it used to be while incomes have fallen or remained stagnant. This is nonsensical.

     

    God forbid they fall again to their prior levels because that would be deflationary and cause the FED to go into further "panic" despite the fact the general welfare of the people would improve.

     

    I am not an inflationista, rather like the FED I believe deflation is still our biggest risk but what we are getting now is the worst of both worlds: rising food and energy prices combined with declining/stagnant incomes.

     

    Who knew the President was a big believer in trickle down economics (the "wealth effect")?

     

    This is in part why economics is the dismal science.
    14 Sep 2012, 11:01 AM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Don't forget those hedonic adjustment games on the CPI. This metric is faulty to rely on for historical comparisons. It is a political token.
    14 Sep 2012, 11:43 AM Reply Like
  • JohnLocke
    , contributor
    Comments (381) | Send Message
     
    CPI is the number folks are given to try to keep them from looking behind the curtain... When times are good we don't care to see but when we are falling off the fiscal cliff we now question what the great and powerful Oz is telling us..

     

    When we finally pick up the pieces the lesson we should learn is to always question the numbers..
    14 Sep 2012, 12:48 PM Reply Like
  • Lakeaffect
    , contributor
    Comments (970) | Send Message
     
    When the overall jumps we only talk about the Core. When the Core jumps we only focus on the overall. Win Win for everyone!
    14 Sep 2012, 02:31 PM Reply Like
  • kcr357
    , contributor
    Comments (557) | Send Message
     
    I'd believe it if they claimed at least a 5% jump in core, anything less collides head-on with reality.
    14 Sep 2012, 03:21 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|