CPI Excluding Food and Energy
The reason we have the Excluding Food and Enjoy portion of the CPI is that the volatile Food and Energy portions tend to lend a rather unstable read to CPI. When the Report comes out, the top line number includes food and energy, the bottom-line number excludes them.
Interestingly the Top line number has been lower than the bottom-line number in the last few reports. What this effectively means is that Food and Energy costs have been pushing down inflation. In other words, without Food and Energy calculated in, inflation is higher. I keep telling myself that every time I stop at the grocery store or fill up my car. I know it seems like I'm paying more, but CPI tells me differently.
Inflation is still with us. The only question is how long it will be maintained.
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