What You Think About Inflation Is Wrong

The government knows about food and oil prices. And it’s taking them into account when it calculates your Social Security check.
The government knows how much it costs.

I got a lot of responses to yesterday's post on the varied uses of inflation statistics, but one popped up over and over: "OK, I can see why the Fed would pay less attention to food and energy than to the broader price index, but the government still shouldn't use core inflation (excluding food and energy) to calculate cost-of-living adjustments."

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