I hadn’t heard about the Flexible Consumer Price Index until I read about it from David Stockman. He pointed to it as evidence of how hot inflation was running. Well, that was true a few months ago, but look how fast it has collapsed. Maybe there’s something to the accusation that companies are cranking up prices under the guise of inflation, because I can assure you that what I pay for groceries and eating out is way, way, way higher than freaking’ 7% (more like 40%).
Another item Mr. Stockman mentioned, however, is the Trimmed Mean PCE Inflation Rate, which, to my eyes, seems closer to the truth.