Core inflation, excluding food and energy, showed no increase at all in November after a 0.1 percent drop in October.We don't get why food & energy are never in those stats. Is core inflation the price of diamond bracelets & zircon-encrusted tweezers?
Tuesday, December 16, 2008
Ultra-Schadenfreude
Every bit of news points out how contrarian we are. The ancestral Bouffant fortune's monthly retirement payment can only increase, so we are completely in favor of deflation, which would appear (because this information is statistical, & not every statistic ever on the subject, we can never truly know) to be making a comeback, or at least to be as popular among economists as inflation for Next Big Thing in Money World.
A big drop in consumer costs, yes, but mostly in energy prices. Hooray for the free market: It fucks you going up & it fucks you coming down.
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2 comments:
Food and energy are not included in core inflation because their prices are so volatile and would skew the results of studying core inflation, even tho most of my weekly expenditures are for food and gasoline.
P.
Non-Econo-Blogger Editor Replies:
Ah-ha. The reason (or explanation, at least) behind the trickery. Volatility. But doesn't the free market make volatility impossible? (Who knows or cares, really? We're just babbling.)
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