farmer448

Why Core Inflation?

Of course it always helps when you jigger the numbers to make your supposed inflation outcomes look better.

The numbers are supposed to give policy makers the information they need about the economy to make good decisions.

So throwing out energy costs has had the effect of allowing imported energy to become to important to our economies success. In the microeconomic sense it is like being captured by your sole supplier of critical components

And golly gee fed folks how hard is it to track median home costs to median income. So what could it possibly mean that the median home costs move from 2.5/3 to more than 5 times median income. (especially when your talking credit/pricing/ inflation)

So get out of your models and your office, and walk around in the economy you are trying to manage