04 February 2019

Flat Inflation

I was reading an economic report so dry it could be a desiccant.

Of note was it mentioning that inflation was flat because the price of gasoline had retreated so much.

It made me wonder how much of the inflation rate is caused by energy prices.

Then I also remembered Obama and how he was an active supporter of spiking energy prices.


  1. One problem with tracking inflation is that the 'basket' of good measured changes constantly - and it often seems that the changes bring in items whose price is dropping.
    IIRC, energy prices are included when dropping but removed when rising... the same goes for housing prices also.

  2. I think energy prices are not included in the CPI inflation calculation at all.


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