Quote:
Originally Posted by hypart
The CPI does include food and energy. You are referring to CPI-U for All Items Less Food and Energy. This index is closely watched by many economic analysts and policymakers under the belief that food and energy prices are volatile and are subject to price shocks that cannot be damped through monetary policy.
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I Googled it and here is what I got. Sounds like gobblegook to me.
"CPI and CPI-U are both measures of consumer price inflation, but they differ in their coverage and methodology. CPI-U stands for Consumer Price Index for All Urban Consumers and covers 93% of the U.S. population. CPI stands for Consumer Price Index and can refer to either CPI-W or C-CPI-U. CPI-W is a subset of CPI-U that covers urban wage earners and clerical workers, and is used for Social Security cost-of-living adjustments. C-CPI-U is a chained price index that varies its expenditure weights each month and results in lower inflation estimates than CPI-U."
Why don't they spell it out in English?