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To: Huck
IIRC, food and fuel ARE including in core inflation figures, but not in CPI.

They aren't now. They used to be included in the CPI calculation, but they've changed the basis for the CPI calculations. The inflation figures in that chart are based on calculations that have been manipulated to make the recent inflation rates appear less than they actually are.

50 posted on 06/23/2011 6:23:58 AM PDT by tacticalogic
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To: tacticalogic

The BLS publishes thousands of CPI indexes each month, including the headline All Items CPI for All Urban Consumers (CPI-U) and the CPI-U for All Items Less Food and Energy. The latter series, widely referred to as the “core” CPI, is closely watched by many economic analysts and policymakers under the belief that food and energy prices are volatile and are subject to price shocks that cannot be damped through monetary policy. However, all consumer goods and services, including food and energy, are represented in the headline CPI.

Most importantly, none of the prominent legislated uses of the CPI excludes food and energy. Social security and federal retirement benefits are updated each year for inflation by the All Items CPI for Urban Wage Earners and Clerical Workers (CPI-W). Individual income tax parameters and Treasury Inflation-Protected Securities (TIPS) returns are based on the All Items CPI-U.


123 posted on 06/23/2011 8:32:23 AM PDT by Huck (The Antifederalists were right!)
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