CPI Is Solid, But Subdued Core Helps Make Case For Accommodation

Unlikely to move the needle.

Unlikely to move the needle.
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4 comments on “CPI Is Solid, But Subdued Core Helps Make Case For Accommodation

  1. Lance Manly

    PCE inflation is chained. It assumes you will drop your standards if what you like rises in price. Not to mention hedonic price adjustment means either one is a measure of the purchasing power of the dollar, as opposed to true cost of living. People on fixed incomes start not to be able to afford stuff because of increased “quality” of items purchased allows the price to go up even though it is not counted as inflation due to the adjustment.

    It will be interesting to seem median cpi from the cleveland fed, it has shown the trend well since the GFC

    • Right Lance …..Quality and Quantity……They seem to work more efficiently by adjusting the later…..

      • Lance Manly

        Just to show the basic BS on PCE that is being pushed out, here is a graph of PCE inflation and the fed funds rate. There is no correlation. In the 90’s PCE settled in at about 2, but FF was between 4-6, in the 2000’s a similar pattern developed.

  2. Use this to find real crowdsourced CPI:

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