Confusion reins getting to core of inflation numbers
Getting a grip on inflation numbers via the consumer price index gets confusing. For October, numbers are up --- or down --- depending on what categories are included or omitted. It can be head scratching, before or after monthly statistics are released. Grumpy Editor feels it's time to recast the CPI and come up with one solid figure. Agree? Let's hear from you.
Two examples of predictions before yesterday's CPI was announced for last month:
l October consumer prices for goods and services probably eased 0.2 percent. Minus energy and food, the index most likely rose 0.2 percent.
--- BusinessWeek, issue dated Nov. 20, 2006
l The core consumer price index, which excludes energy costs, is expected to rise 0.2 percent for October.
--- The Wall Street Journal, Nov. 13, 2006
Officially, consumer prices in October dropped 0.5 percent in a compilation by the Bureau of Labor Statistics of the Department of Labor. But things do get cloudy, as with most government tallies. Core inflation (that's minus energy and food prices) rose 0.1 percent.
To get to the CPI, the BLS compiles a basket of tallies from various categories, including all urban consumers, urban wage earners and clerical workers and chained consumer price index for all urban consumers. To that, seasonally adjusted basis is added. Topping off the mix are other indexes ranging from apparel to education and communication.
Like full CPI statistics for October? Then check out a bucketful at:
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