[SaxxonWoods]

Food is not included in the computation of inflation.

[SaxxonWoods]

I read the FED reports. “Historical Norms” are never mentioned.

The FED says its job is too keep inflation at a target rate (currently 2%, which according to them is where we are at) and to keep the business cycle at “full” employment, which they also say we have reached.

If they keep raising they’ll just have to lower again when employment and inflation drop below their targets.

The only thing I can come up with is that they think the job market is too hot, and they know politically they can’t raise rates much once the presidential campaign really takes off. The 4th year of presidential terms usually sees a quiet FED. They can’t blame inflation, it’s right where they say they want it.

[Toddsterpatriot]

2. How is the CPI market basket determined? The CPI market basket is developed from detailed expenditure information provided by families and individuals on what they actually bought. There is a time lag between the expenditure survey and its use in the CPI. For example, CPI data in 2016 and 2017 was based on data collected from the Consumer Expenditure Surveys for 2013 and 2014. In each of those years, about 24,000 consumers from around the country provided information each quarter on their spending habits in the interview survey. To collect information on frequently purchased items, such as food and personal care products, another 12,000 consumers in each of these years kept diaries listing everything they bought during a 2-week period.

https://www.bls.gov/cpi/questions-and-answers.htm#Question_2