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One practice of economists that draws a lot of complaints is the use of subsets of the consumer price indices. Most commonly it is core CPI – excluding food and energy – although there are fancier measures like median CPI (which I describe below). Meanwhile, if a component of the CPI rises a lot in a month, commentary will often state things like “if we exclude {whatever had a price spike}, then CPI increased by only 0.2% on the month, instead of 0.5%.” (As should be expected, complaints are only about excluding items that rose quickly, everybody is happy to throw away the effects of items that fall rapidly in price.)... Bond EconomicsPrimer: Core And Median CPI JustificationBrian Romanchuk
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One practice of economists that draws a lot of complaints is the use of subsets of the consumer price indices. Most commonly it is core CPI – excluding food and energy – although there are fancier measures like median CPI (which I describe below). Meanwhile, if a component of the CPI rises a lot in a month, commentary will often state things like “if we exclude {whatever had a price spike}, then CPI increased by only 0.2% on the month, instead of 0.5%.” (As should be expected, complaints are only about excluding items that rose quickly, everybody is happy to throw away the effects of items that fall rapidly in price.)... Bond EconomicsPrimer: Core And Median CPI JustificationBrian Romanchuk
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Mike Norman considers the following as important:
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One practice of economists that draws a lot of complaints is the use of subsets of the consumer price indices. Most commonly it is core CPI – excluding food and energy – although there are fancier measures like median CPI (which I describe below). Meanwhile, if a component of the CPI rises a lot in a month, commentary will often state things like “if we exclude {whatever had a price spike}, then CPI increased by only 0.2% on the month, instead of 0.5%.” (As should be expected, complaints are only about excluding items that rose quickly, everybody is happy to throw away the effects of items that fall rapidly in price.)...Bond Economics
Primer: Core And Median CPI Justification
Brian Romanchuk