Reply #3: Gm in the fifties objected to car price increases being called inflation

[papau]

So they sold the econ folks in gov the improved product theory

It had a minor effect on the inflation numbers - but it took GM off the radar.

When computers came in the 80's as a standard office item, the "improvements" were so great that the adjustment became silly.

I am told the adjustment for electronics is still so great that it affects the inflation number each year - but I do not have exact data.