Ok, so I have a question. I thought I would try to understand this change in the way we calculate headline inflation. I understand that it was changed in the 90’s and has consistantly reported a lower level of inflation than the older model did. My question is why. Not conspiricy theory or “cause the gov is trying to inflate its way outa the debt”. They had to have better, more financially sound reasons than that, or no one would still be buying securities. So my question is what are these reasons for change? Is this a better gage of real inflation, more timely, less prone to wide swings…….? I understand core inflation, I understand wage inflation. I dont need definitions or anything like that. I took Econ 101. What I am wondering is more of the WHY.
