Doug, thanks for the info and a HAPPY NEW YEAR!!!!!!\ maggie coleman [EMAIL PROTECTED] In a message dated 96-12-30 15:24:20 EST, [EMAIL PROTECTED] (Doug Henwood) writes: >Subj: [PEN-L:7987] Re: Fwd: Re: cost of job loss >Date: 96-12-30 15:24:20 EST >From: [EMAIL PROTECTED] (Doug Henwood) >Sender: [EMAIL PROTECTED] >Reply-to: [EMAIL PROTECTED] >To: [EMAIL PROTECTED] (Multiple recipients of list) > >At 11:44 AM 12/30/96, [EMAIL PROTECTED] wrote: > >>What is the definition of 'core' inflation and what is the difference >between >>'core' inflation and inflation as measured by the cpi? Are the two types of >>inflation defined in relation to each other or are they seperate? > >"Core" inflation is the CPI excluding food and energy prices. The BLS >publishes several special indexes like this, but this is the most popular >one. The logic is that food & energy display great short-term volatility >that may distort the underlying trend. This is of special interest to Wall >Street, which is more concerned with month-to-month and quarter-to-quarter >figures than are most civilians, who look at year-to-year numbers. > >Similar things are done with other major series, like durable goods, where >aircraft orders are sometimes stripped away because they're so volatile, >and retail sales, which are often looked at ex-auto, because the car market >has a life of its own separate from more proasic consumer goods. > >Besides, Wall Streeters are usually looking for a "story" to tell - one >consistent with either their own prejudices or the sales effort - so >looking at subindexes is sometimes a way to avoid embarrassing facts. >Another favorite ploy is to look at seasonally unadjusted numbers, if the >tale they tell is friendlier to what you want to hear. People with bond >inventories or portfolios under management will go to great lengths to >uncover evidence of economic weakness lying under the headline numbers. > >Doug > >-- > >Doug Henwood >Left Business Observer >250 W 85 St >New York NY 10024-3217 >USA >+1-212-874-4020 voice >+1-212-874-3137 fax >email: <[EMAIL PROTECTED]> >web: <http://www.panix.com/~dhenwood/LBO_home.html> > > > > >----------------------- Headers -------------------------------- >From [EMAIL PROTECTED] Mon Dec 30 15:23:52 1996 >Return-Path: [EMAIL PROTECTED] >Received: from anthrax.ecst.csuchico.edu (anthrax.ecst.csuchico.edu >[132.241.1.25]) by emin12.mail.aol.com (8.6.12/8.6.12) with ESMTP id >PAA23797; Mon, 30 Dec 1996 15:23:50 -0500 >Received: from anthrax (localhost [127.0.0.1]) by anthrax.ecst.csuchico.edu >(8.8.2/8.8.2) with SMTP id MAA04857; Mon, 30 Dec 1996 12:20:23 -0800 (PST) >Date: Mon, 30 Dec 1996 12:20:23 -0800 (PST) >Message-Id: <v01540a0aaeedcf5c7792@[166.84.250.86]> >Errors-To: [EMAIL PROTECTED] >Reply-To: [EMAIL PROTECTED] >Originator: [EMAIL PROTECTED] >Sender: [EMAIL PROTECTED] >Precedence: bulk >From: [EMAIL PROTECTED] (Doug Henwood) >To: Multiple recipients of list <[EMAIL PROTECTED]> >Subject: [PEN-L:7987] Re: Fwd: Re: cost of job loss >X-Listprocessor-Version: 6.0c -- ListProcessor by Anastasios Kotsikonas >X-Comment: Progressive Economics >Content-Type: text/plain; charset="us-ascii" >Mime-Version: 1.0 --------------------- Forwarded message: From: [EMAIL PROTECTED] (Doug Henwood) Sender: [EMAIL PROTECTED] Reply-to: [EMAIL PROTECTED] To: [EMAIL PROTECTED] (Multiple recipients of list) Date: 96-12-30 15:24:20 EST At 11:44 AM 12/30/96, [EMAIL PROTECTED] wrote: >What is the definition of 'core' inflation and what is the difference between >'core' inflation and inflation as measured by the cpi? Are the two types of >inflation defined in relation to each other or are they seperate? "Core" inflation is the CPI excluding food and energy prices. The BLS publishes several special indexes like this, but this is the most popular one. The logic is that food & energy display great short-term volatility that may distort the underlying trend. This is of special interest to Wall Street, which is more concerned with month-to-month and quarter-to-quarter figures than are most civilians, who look at year-to-year numbers. Similar things are done with other major series, like durable goods, where aircraft orders are sometimes stripped away because they're so volatile, and retail sales, which are often looked at ex-auto, because the car market has a life of its own separate from more proasic consumer goods. Besides, Wall Streeters are usually looking for a "story" to tell - one consistent with either their own prejudices or the sales effort - so looking at subindexes is sometimes a way to avoid embarrassing facts. Another favorite ploy is to look at seasonally unadjusted numbers, if the tale they tell is friendlier to what you want to hear. People with bond inventories or portfolios under management will go to great lengths to uncover evidence of economic weakness lying under the headline numbers. Doug -- Doug Henwood Left Business Observer 250 W 85 St New York NY 10024-3217 USA +1-212-874-4020 voice +1-212-874-3137 fax email: <[EMAIL PROTECTED]> web: <http://www.panix.com/~dhenwood/LBO_home.html>
