The cartoon is accurate. Core inflation doesn't measure food or energy prices which as groups are very inelastic and so have a disproportionate impact.
In addition to the food and energy mentioned in the last post I believe this also includes a suspect value placed on the cost of housing - the housing number is manufactured by the governement and has little to do with reality.
The cartoon is accurate. Core inflation doesn't measure food or energy prices which as groups are very inelastic and so have a disproportionate impact.
ReplyDeleteNo, the cartoon is wrong. Headline inflation is just above 1% and core inflation is at all time lows...the trends are ominous and QE2 is justified.
ReplyDeleteThe US is tracking Japan on inflation:
ReplyDeletehttp://www.nytimes.com/2010/11/20/business/economy/20charts.html?hp
In addition to the food and energy mentioned in the last post I believe this also includes a suspect value placed on the cost of housing - the housing number is manufactured by the governement and has little to do with reality.
ReplyDeleteTrey EMBA 2012
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