[meyer]

Core CPI doesn't include food, energy or home ownership.

Which means that it essentially measures nothing. Food, energy, and housing should be among the first three items on the CPI list.

[Mase]

Food, energy, and housing should be among the first three items on the CPI list.

The government calculates CPI numbers that include food and energy as well as the core rate which omits food and energy. Housing is included in both measures.

From the BLS website:

"The CPI represents all goods and services purchased for consumption by the reference population (U or W) BLS has classified all expenditure items into more than 200 categories, arranged into eight major groups. Major groups and examples of categories in each are as follows:"

• FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, service meals and snacks)
  
• HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture)
  
• APPAREL (men's shirts and sweaters, women's dresses, jewelry)
  
• TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance)
  
• MEDICAL CARE (prescription drugs and medical supplies, physicians' services, eyeglasses and eye care, hospital services)
  
• RECREATION (televisions, pets and pet products, sports equipment, admissions);
  
• EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, computer software and accessories);
  
• OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and other personal services, funeral expenses).
  

"Also included within these major groups are various government-charged user fees, such as water and sewerage charges, auto registration fees, and vehicle tolls. In addition, the CPI includes taxes (such as sales and excise taxes) that are directly associated with the prices of specific goods and services. However, the CPI excludes taxes (such as income and Social Security taxes) not directly associated with the purchase of consumer goods and services."

C.P.I. FAQ's

It's probably a good idea to question the motivations and the information being disseminated by the doom and gloomers who want us to believe that our eyes are deceiving us and the worst economy since Hoover is just around the corner.