Re:If wages are to rise, workers need more bargaining power
by nabla9 on Wednesday June 06, 2018 @09:25AM
(#17246937)
In the US BLS headline CPI is used, I think.
>all including or excluding various things like gasoline, transit, mortgages, some taxes, tobacco.
You can critique inflation measures, but there is good critique and bad critique.
Including some items can introduce unnecessary noise or make the measurement less accurate over long term. Some prices can be safely left out from the price basket because their prices are know to get into the index indirectly.
In US CPI used to overestimate inflation mostly because slow adjustments. CPI is modified to correct to this. Most developed nations use good modern CPI measures that take into account things like product substitution etc.
>all including or excluding various things like gasoline, transit, mortgages, some taxes, tobacco.
You can critique inflation measures, but there is good critique and bad critique.
Including some items can introduce unnecessary noise or make the measurement less accurate over long term. Some prices can be safely left out from the price basket because their prices are know to get into the index indirectly.
In US CPI used to overestimate inflation mostly because slow adjustments. CPI is modified to correct to this. Most developed nations use good modern CPI measures that take into account things like product substitution etc.