The article's not talking about the BLS's CPI, it's talking about the Commerce Dept's PCE, and let's skip any complaints about the BEA's adjustments and go for a list of exactly what adjustments we do want.
And why.
The article's not talking about the BLS's CPI, it's talking about the Commerce Dept's PCE, and let's skip any complaints about the BEA's adjustments and go for a list of exactly what adjustments we do want.
And why.
Good try again.
Ah so now we’re back to ignoring that changing the character of the CPI (just like changing the character of the unemployment rate) eliminates comparing apples to apples. By replacing set standards with soft morphing standards such as hedonics and the substitution effect, the CPI can not longer be reliably used to evaluate return on investment nor how one’s income stands up to inflation.
(FYI the PE uses an enhanced form of the substitution effect.)