Wednesday, April 16, 2008

"Core" inflation as measured by the government does not include food or energy?

That's absurd!

I've just got to quit reading these damn financial blogs. I had no idea we were this far off the road.

I think I'll just concentrate on my own -- anecdotal -- observations for awhile.

Looked out the window while talking to a customer and commented, "There are 8 empty parking spots in front of my store! I haven't seen that in years." A minute later, there were 12 empty parking spots on my block.

It seems like I should be able to develop some measure of economic health that compares job applications, cold calls, people trying to sell me product, and empty parking spots.

Seems about as accurate as government statistics.

3 comments:

tim said...

Duncan, core doesn't include those because they are too volatile. It's been like that for ages. The core has been proven to be useful because of that.

But the Fed doesn't look at the core, they look at topline, too. They look at tons of stuff.

If food and gas stay high, their effects will work into core.

You're flapping your wings for no good reason, since gas and food prices are readily reported anyway.

If anything, gas prices are over-reported by the media, because all people seem to get excited about are gas and cigarette prices. I've often thought of starting a "gas and cigs" party that taxes everyone to subsidize gas and cigarettes. 50 state landslide.

Duncan McGeary said...

timothy.

I still think its absurd. Being a non-consumer, guess which two things I actually buy?

Anonymous said...

I agree, Duncan. Not everyone has to buy a car, or a refrigerator, or a computer this year. But everyone will buy gas and food this week. And those prices are steadily rising.

When the government reports inflation rates and excludes gas and food, I think, "I'm a single man, if you exclude my wife".