US consumer prices tick up just 0.1 percent last month despite big gain in energy costs

Associated Press ^ | 20 Feb 14 | CHRISTOPHER S. RUGABER

[Luke21]

I just remember the ninety nine cent Jumbo Jack during the Bush years. You name it, the price has gone up under our king. The media twists itself into knots defending him or hiding his treachery. I knew this was Asspress before I clicked. Even among the standard media whores and villains, Asspress is the vilest mouthpiece for the ruling tyranny, designed for consumption by brainless fools.

Under Carter the press had to report gas lines, but did not use any outrage at all in reporting about other economic stats. Nor did they guard against the statistics reaching the public. They were lazy at the time, believing Ted Kennedy would beat Carter so they didn't have to guard against bad news, especially the Iran Hostage situation. Even then, the press was wimpy, vacillating between defending Carter's early cowardice and berating him for admitting the Shah. They always take the enemy side, always, and are the vanguard of the enemy.

[Toddsterpatriot]

Todd. It’s only utility for me is being in my tank and making my car go.

I agree.

No matter what they add its utility doesn’t change, it is the only item that works for what it does in my engine

I agree again.

and telling me that their additives actually mean my price has gone down when the price at the pump is UP is nothing more than irrational

In this case, I have to disagree.

If Obama mandates that they add banana flavoring to gasoline, increasing the cost by $1.00 per gallon, you can't blame that increase on inflation.

Did your cost go up? Absolutely!

[Toddsterpatriot]

Can we agree that the Fed doesn’t EXCLUSIVELY use only measures that include food and fuel?

Sure.

Can we agree that PCE doesn't exclude food and energy?

[xzins]

It IS InflatED whether a “natural” inflation or not.

It seems that the source of inflatedness should be irrelevant regarding any higher amount the consumer has to pay.

[khelus]

Gasoline costs me what gasoline costs me, Todd. It’s only utility for me is being in my tank and making my car go. No matter what they add its utility doesn’t change, it is the only item that works for what it does in my engine, and telling me that their additives actually mean my price has gone down when the price at the pump is UP is nothing more than irrational IF THEY are trying truly to find if MY COSTS have gone up.

If you tell me that “angus” sirloin costs 50 cents a pound more than non-angus sirloin, and I choose the angus, then fine, tell me I’ve not really had a price increase because I chose a more expensive product when the same thing was available cheaper.

But...gasoline? What else will I put in my tank...water?

Yup stuff casts what stuff costs. It doesn't matter why the cost changed.

Thst basic concept that was the foundation of the CPI when it was instituted was to measure a set standard of living.

When you start fiddling with the cost of an item added to the CPI you are indulging in hedonics / quality adjustment / substitution. The BLS has used several tools to do this.

The CPI has now been changed to measure the cost of a declining standard of living.

The ivory tower academics who come up with concepts such as quality adjustment are of the same cloth as those who came up with ObamaCare and deny there are death panels.

When ObamaCare is accused of having death panels, the academics play word games and deny there are death panels since the word death panels isn't found in ObamaCare.

However there are committees that come up with 'best standards of practice' that are in reality 'death panels'. IMHO that means ObamaCare has death panels.

Back to the BLS. They currently assert that they are measuring a constant level of satisfaction. In reality they are implying that if inflation forces you to buy rot gut chopped meat, not prime chopped meat, you are 'satisfied' and the concept of a set standard of living is irrelevant.

I guess one could say you are satisfied in that you still have food to eat, but you definitely do not have the same standard of living.

When people are reduced to eating dog food the same type of thinking would call a change in consumer's tastes. LOL

FYI the PCE is also called:
The PCE price index (PCEPI), the PCE deflator, PCE price deflator, or the Implicit Price Deflator for Personal Consumption Expenditures (IPD for PCE), and as the Chain-type Price Index for Personal Consumption Expenditures (CTPIPCE).

The PCE is pure chained dollars / substitution.

It comes in two variants with and without core inflation. your confusion is understandable considering the BEA's definition of Core PCE Inflation: {I added some white space to make it more readable]

What is the Core PCE price index?

The "core" PCE price index is defined as personal consumption expenditures (PCE) prices excluding food and energy prices.
The core PCE price index measures the prices paid by consumers for goods and services without the volatility caused by movements in food and energy prices to reveal underlying inflation trends.
Food prices consist of those included in the PCE category of “food and beverages purchased for off-premises consumption.”
Prices included in the PCE category “food services and accommodations” are not included in the “food” price index because these services prices tend to be far less volatile than those for food commodities such as meats, fresh vegetables and fruits.
Energy prices consist of those included in the PCE categories of “gasoline and other energy goods” and of “electricity and gas” utilities. Link

[lightman]

Yup...I don’t fly but I do drive. MY “CPI” is Cartereque stagflationary!

[newnhdad]

Anyone that regulars a supermarket knows this is not true. Prices of food staples have gone up significantly over the past few years and a lot in 2014 so far. Anyone that actually pays for them knows this. I went out looking for steak this weekend and could not find anything worth eating for less than 9.99 lb. I’m hoping for some loss leading sales this week or it would be a month without beef that didn’t come in a hot dog.

[khelus]

Addenum to post 165

As I reread it, I may not have been clear in my point about food costs and the PCE. They way PCE and food costs are described on the government web site is confusing and could be interpreted either way. I added some white space to make the gov doc more readable. on the website the sentences are all smashed together.