The Great Inflation Cover-Up
Apr 3rd, 2008 | By Contrarian Profits | Category: Featured, Financial News, Politics & EconomicsFortune magazine asks an interesting question: How do you account for the discrepancy between the Fed’s recent assurances that inflation is under control and the 91% of the population (according to a March CNN poll) that’s worried it isn’t?
The answer? The feds focus on what they call “core” inflation. This strips out energy and food from the consumer price index because of their theoretical vulnerability to short-term volatility — magically making inflation seem smaller than it is.