what is the inflation rate including food and energy costs .?

Question

when and why did govt. start to exclude food and energy costs in their estimates .we all have to eat and heat our homes , drive to work etc. .would true figures be politically embarasing ?

Answer 1

There are a couple ways to measure inflation. The Consumer Price Index (CPI) is one manner. The GDP deflator is a better measure.

Here's some info from the Federal Reserve. As they state, food and energy cost are excluded from the core CPI because "In many instances, large movements in food and energy prices arise because of supply disruptions such as drought or OPEC-led cutbacks in production."

Thus these are often temporary fluctuations and not generally inflation in one direction. Consider gas prices which have risen, but have been up and down in recent years.

http://www.clevelandfed.org/research/Inflation/US-Inflation/cpi.cfm

Answer 2

When the Bureau of Labor Statistics releases CPI (Consumer Price Index) numbers, they release both the overall % increase and the % increase excluding food and energy. The logic behind this is that food and energy prices are more volatile than other prices, so it is easier to ascertain a trend if food and energy prices are excluded.

For example, on Feb 21st, the CPI for Jan was released and came out as an increase of 0.2%. Core CPI (excluding food + energy) came out as an increase of 0.3%.

Answer 3

Inflation statistics are based on the consumer price index (CPI), which does include food and energy costs. It is a myth that it does not.

Answer 4

It is more important to pay attention to the gap between the rich and poor before Reagan.

Answer 5

You betcha! It gives the government controlled media another deceiving statistic to use against the public and confuse the situation.

Answer 6

i would like that information..... 10 years ago i survived off of 5 bucks an hour... rent gas electric and even cable....... now try that.... it is impossible