Inflating inflation

Newspapers are covering the recent "shoot up" of inflation to 2.5%. Much larger than the 2.1% that would be anticipated. Primary reason: gas prices. What is typically overlooked or buried in the last paragraphs (as per the following snip) is that there are different inflation measures. The Globe & Mail, for instance, carried this story today: Inflation jumps. In the last paragraph was the following:

. . . the closely watch core rate of inflation fell back to 1.5 per cent in May, from April's 1.8 per cent, suggesting few underlying price pressures in the economy. The core rate is the Bank of Canada's preferred measure of inflation. It excludes the eight most volatile components of the consumer price index.

All inflation is not created equal.

Posted by Grayson at June 22, 2004 07:28 AM