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easy2012

More Inflation Fun - Chained Cpi

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The government now uses the standard Consumer Price Index, but the Labor Department and many economists say that overstates inflation by not reflecting product substitutions most consumers make when prices rise. A better index, called the “chained CPI,” mimics the ways that consumers keep their expenses steady by, say, switching to bananas when the cost of oranges goes up. The Congressional Budget Office estimates the chained CPI will grow about 0.3 percentage point a year slower than the normal CPI, saving about $100 billion over 10 years.

http://www.bloomberg.com/news/2011-07-08/three-steps-toward-a-grand-bargain-to-reduce-the-u-s-national-debt-view.html

Soon I think we will have a CPI-2 where inflation is deemed to be 2% no matter what happened as consumer will cut back or eat less or substitute

their purchases so that their expenditure will matches CPI-2....

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I;ve got a better idea - sod substitution, why not base cpi of a basket of goods NOBODY can afford to buy, heck you could make them all up as you have no comparable data, in fact you;d have to.

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I;ve got a better idea - sod substitution, why not base cpi of a basket of goods NOBODY can afford to buy

How about a basket of goods that aren't sold any more.

Lucky Bags, permanently 6d

Raleigh Choppers one pound three and sixpence

Loon Pants, ten bob

The Hotspur, threepence

The possibilities are enormous. No inflation ever!

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How about a basket of goods that aren't sold any more.

Lucky Bags, permanently 6d

Raleigh Choppers one pound three and sixpence

Loon Pants, ten bob

The Hotspur, threepence

The possibilities are enormous. No inflation ever!

Good idea.

Must keep it a bit more current though.

NOTW. :lol:

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  • 309 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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