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What counts as inflation?



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With the recent spike in energy costs there has been debate about inflation and what counts and what doesn't count. The core Consumer Price Index has barely moved and many economists prefer looking at that number instead of just the Consumer Price Index which jumped due to high oil and food prices. I suppose I can understand the rationale associated with economists focusing on the core number but as the headline of this Times article suggests, everything is fine "If you Don't Eat or Drive." If you do eat and drive and if you heat your house in the winter, you're probably not going to be focusing too much on the core number.


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