The problem was that
the official inflation index no longer reflected many people's personal shopping basket.
Not exact matches
Minutes of the Fed's March 20 - 21 policy meeting published this month showed
officials expected the annual PCE price
indexes to accelerate in March partly because of «the arithmetic effect of the soft readings on
inflation in early 2017 dropping out of the calculation.»
Minutes of the Fed's March 20 - 21 policy meeting published on April 11 showed
officials expected the annual PCE price
indexes to accelerate in March partly because of «the arithmetic effect of the soft readings on
inflation in early 2017 dropping out of the calculation».
The problem is that
inflation has been sluggish lately — if we're using the
official consumer price
index (CPI).
Going back to the «Halloween surprise» comparison, we observed that the U-Tokyo CPI indicator (a «nowcast» of daily
inflation using scanner prices at grocery stores) was greatly under - performing its «
official»
index component in October 2014.
Nevertheless, prescription drugs CPI is only 1.37 % of the aggregate
index (according to a BLS
official at the time of writing), thus the overall effect on medical care
inflation and headline aggregate
index should be limited.
(I'm not talking about
official numbers which are not believable except by the brainwashed; I'm talking about the real rate of
inflation reported by the Chapwood
index or shadowstats.com.)
Unlike public - sector workers and our elected
officials, most middle - class wage earners in the private sector lack the
inflation -
indexed defined benefit pensions the public sector enjoys, which are ultimately backstopped by taxpayers.