>>21471047>this metric we created and use is actually flawed at measuring what we created it to measure….>we actually use double suck and fuck index minus second hand basket pricesYeah, that sounds like PCE with the changing basket.
And yes, they also spoke of core CPI for a long while as it was lower than CPI. Then when CPI was lower than core they switched to CPI. And when CPI is too high, they switch to PCE. And sometimes when they are really desperate go over to PPI.
I almost forgot: They are also now doing the 3 month-average inflation of which they then try to derive future readings.
>The purported role of core inflation as describing a less-noisy measure of inflation suggests that it predicts future inflation well, or better than headline inflation. Indeed, recent analysis from the St. Louis Fed’s Michael McCracken and Trần Khánh Ngân finds that core inflation does predict future inflation as well as or better than other measures of inflation. Still, if the goal is to predict future inflation, an explicit forecast that uses all kinds of information, such as news about future disruptions of commodities markets or fiscal policy, is likely to outperform any measure of current inflation as a forecast. Therefore, it doesn’t make much sense to compute core inflation simply to forecast future inflation, even if it outperforms headline inflation in that respect.>Yes, core is better, but fuck it.https://www.stlouisfed.org/on-the-economy/2024/may/measuring-inflation-headline-core-supercore-services 