They changed the way “inflation” is calculated under Clinton and because of this Citi is right ..the stuff like food and gas just don’t count anymore..so relax the masters have it all under control...there is very little inflation ( unless you eat and drive of course)
OK, where’s the FReeper that vehemently denies that food and energy are left out of the CPI?
The Department of Labor calculates both the "core" inflation rate without food and energy, and the total inflation rate with everything. Now whether the core or the total rate is publicized depends on which number the press wants to pump up.
For example the Social Security cost of living adjustment is based to the total inflation rate, so the run up of fuel cost in the third quarter (when the COLA is calculated) of 2008 caused a high adjustment in January 2009. But the subsequent crash in costs (greater than $4 per gallon in July 2008 down to $1.419 Christmas 2008 for me) meant that the following two years wouldn't have a COLA. If they used the "core" inflation rate there wouldn't have been a large 2009 COLA.