Once you start exploring the concepts behind so many ‘enhancements’ to the CPI it’s mind boggling. Junk concepts are cleverly hidden by convoluted language and mathematical formulas intend to deter anyone interested in looking behind the curtain.
All those ‘guality improvements’ are in the mind of ivory tower academics and government bureaucrats.
Note an added bonus of under reporting inflation is that ‘real’ GDP, i.e. GDP adjusted for inflation by the CPI is made to look larger than it is.
The GDP is the recession measure isn’t it? Am I remembering that right. 2 quarters of negative GDP growth. (or is it 2 of zero growth or less?)
If they’re making it larger, then we’ve had more recession than being admitted to.
I forgot to add, that if my old TV dies, and the closer new equivalent costs $1350, and my set standard of living includes a TV, then I spent $1350 and that is what ought to be counted in the CPI. period !