So....they say that "inflation" rose only 2.4% in the last year..does ANYONE believe this?

[n2doc]

http://www.marketwatch.com/news/story/income-spending-growth-slow-september/story.aspx?guid=%7BC30E840A%2DC89D%2D4991%2DA4A7%2D45FC65868662%7D

snip:
Meanwhile, inflation was steady in September.
The personal consumption expenditure index, which Federal Reserve officials say is a more accurate gauge of inflation than the better-known consumer price index, rose 0.2% on the month. The core rate of inflation - which excludes food and energy prices - also rose 0.2%, as expected.
In the past year, the PCE price index has risen 2.4%, while the core PCE index was up 1.8%, the same as the previous month. Fed officials have adopted a loose, informal target for core inflation of 1% to 2%.




BULL.... Why anyone would believe an index that does not include energy costs, one of the biggest expenditures in any household, is absurd.

[BOSSHOG]

1. Excludes food and energy prices

leave it to a liberal to whine about things which are non essential to daily life. Develop some conservative values and this report will make you smile.

Our monthly expenditures are practically nothing when I don't consider the mortgage, car payment, gas and groceries and utility bills.

[madokie]

2. Of course

I don't believe a word of it.

[shaniqua6392]

3. I know things are worse here in Michigan

but I still do not believe any of their figures. I know something has to be left out of the equation. How much longer can they keep up with this charade? I keep waiting for the bottom to drop out. They are just holding onto things with false data so that when a Dem gets in the White House and the economy fails at that point, it will be the "mismanagement of government by the Dems".

[thunder35]

4. NO

[phantom power]

5. I heard an explaination of this the other day....

the inflation measure without food/fuel is used for estimating short-term inflation. Food and fuel exhibit short-term volatility, so for short-term measures it's best to leave them out.

However, once you start talking about longer time-frames, like year-on-year, a legitimate inflation measure will include both food and fuel, for all the obvious reasons. So, as usual, they are lying with the truth. They're not reporting the longer-term numbers, because if they did they'd their numbers would reflect what is already obvious to most people, which is that inflation rates are really high right now.

[applegrove]

6. And prices of civil goods have been coming down cause they are all from China.

Also only part of the economy is roaring...the defense industry, the stock market was..but not the middle class or the poor.