Are Food & Energy Excluded From Some Inflation Measures?

Conceptually, when government authorities try to quantify inflation, what they’re trying to figure out is whether the average level of prices for goods is increasing or decreasing. For example, imagine a world where scientists discover a new use for gold in medicine. Let’s say consumers have a large demand for this new use. In that case, microchips that use gold will go up in price relative to microchips that do not use gold. Read Full Article »