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To: xzins
Because you are smug, regardless of how wrong you are. So let's review.

For the purpose of calculating the CPI, the BLS:

1. Includes food and energy,
2. Accounts for shrinking packaging sizes, and
3. Does not substitute chicken for beef.

75 posted on 02/20/2014 4:46:07 PM PST by 1rudeboy
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To: 1rudeboy

Because you are only partially on the right track:

Core Inflation does not use volatile food and energy

The CPI does have a substitution function in their formula.

A market basket of goods is weighted based on purchasing habits. Those habits cause updates every few years.


83 posted on 02/20/2014 5:13:20 PM PST by xzins ( Retired Army Chaplain and Proud of It! Those who truly support our troops pray for victory!)
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