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Wednesday, November 18, 2009

Figures don't lie, but liars figure. CPI

http://money.cnn.com/2009/11/18/news/economy/cpi_october/
Rising fuel prices hit consumers The government's key inflation measure came in higher than expected due to a 6.3% jump in oil and gas prices.

What is the Consumer Price Index (CPI)? Seems to me it is just another way for the United States to lie to it's citizens. Evidently in an effort to create a good number, they CPI doesn't include volatile items like food and fuel. Obviously food and fuel are not important to the average consumer. Unless they want to eat and stay warm. However, the CPI does measure the one time artificial spike in car prices from the recent cash for clunkers program. Aren't you glad the government has a way to adjust the CPI so that as you starve and freeze you will know how good the country is doing?

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