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Or have they excluded so many things that it is no longer useful? Dropping energy prices cause the biggest drop in consumer prices month over month in 46 years. However, core CPI still went up 0.2 percent.
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“It is no use trying to 'see through' first principles. If you see through everything, then everything is transparent. But a wholly transparent world is an invisible world. To 'see through' all things is the same as not to see.”
― C.S. Lewis, The Abolition of Man -
It makes sense to exclude energy if there's a supply shock in play. If OTOH there's just market forces being at work (which by large seems to be the case) I don't think there really is a reason to exclude it.
Even if one would insist on doing so, and point to benign core CPI, I'm speculating it's not as reassuring as it would appear. Since energy demand is inelastic, any increase in energy prices decrease expenditures on other goods (assuming they won't finance through dissaving). And since demand for those other goods decreases, there will be relatively less upward price pressures.DISCLAIMER: the author of the above written texts does not warrant or assume any legal liability or responsibility for any offence and insult; disrespect, arrogance and related forms of demeaning behaviour; discrimination based on race, gender, age, income class, body mass, living area, political voting-record, football fan-ship and musical preference; insensitivity towards material, emotional or spiritual distress; and attempted emotional or financial black-mailing, skirt-chasing or death-threats perceived by the reader of the said written texts.
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