The Utter Stupidity of "Core CPI"
You can't make this stuff up; Core CPI is pure propaganda
So, this thing called “Core CPI,” or the “Core” Consumer Price Index…
…for analytical purposes, the CPI is also divided into food, energy, and all items less food and energy. The CPI for all items less food and energy gets considerable attention as a measure of underlying core inflation, which is not subject to the volatile movements of food and energy prices.
Okay, let’s be clear, the consumer cannot live without food! And, life as we know it ends without energy! What could possibly be more “core” than food and energy? Well, I’ll let the Bureau of Labor Statistics tell you.
Housing (rent of primary residence, owners' equivalent rent, utilities <which require energy>, bedroom furniture)
Apparel (men's shirts and sweaters, women's dresses, baby clothes, shoes, jewelry)
Transportation (new vehicles, airline fares <energy dependent>, gasoline <energy>, motor vehicle insurance)
Medical care (prescription drugs, medical equipment and supplies, physicians' services, eyeglasses and eye care, hospital services)
Recreation (televisions, toys, pets and pet products, sports equipment, park and museum admissions)
Education and communication (college tuition, postage, telephone services, computer software and accessories)
Other goods and services (tobacco and smoking products, haircuts and other personal services, funeral expenses)
BLS; Consumer Price Index: Concepts
So, Recreation (televisions, toys, pets and pet products, sports equipment, park and museum admissions) is Core, Education (which we outlawed in-person during Covid) is Core, tobacco, haircuts, buying a new t-shirt and underwear, having your nails done and getting a massage are somehow Core, but Food and Energy are not Core?! Many of the so-called “core” expenses can be avoid if necessary, no such luck with food and energy. Unless, you grow your own food and make at least some of your own energy.
What should be Core: Food, Energy, Housing, Transportation and Medical. The BLS has it almost completely Bass Ackwards, which is the point; with respect to inflation what should be Core is volatile, and ugly, and that is what people are feeling, and that is what they don’t want you to know.
They use this same tactic with drawing your attention to the Unemployment Rate, when you should be looking at the Workforce Participation Rate. It’s pure slight-of-hand, magic, hey! look over here!
Inflation May ‘20 to May ‘24:
Let’s have a look at inflation since 2019:
2020: The average rate of inflation was 1.2%.
2021: The average rate of inflation was 4.7%.
2022: The average rate of inflation was 8.0%.
2023: The average rate of inflation was 4.1%.
Now, I’m sorry, but inflation is not “transitory,” that is more slight of hand, unless it is followed by deflation, which the Bankers and the Feds religiously avoid; they can’t steal your money with deflation. Inflation sticks. Treat inflation like compounding interest; so, for the entire 4 year period above, we have 1.012x1.047x1.080x1.041=1.191. In other words, prices were up 19.1% between December 31 of 2019 and the end of 2023. The Philadelphia Fed is predicting 3.4% for 2024, so adding that to our series would result in inflation over the five year period of 19.75%.
You feelin’ that? Are your wages up 20% over the past 5 years?
If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.
Thomas Jefferson
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