By Graham Summers – Re-Blogged From http://www.Silver-Phoenix500.com
The financial media is finally catching on to something we’ve been screaming about for years…
That the Fed’s preferred metric for measuring inflation is a complete joke.
Making matters more difficult, the Fed’s preferred inflation gauge does a pitiful job of capturing the quandary facing many households that live paycheck to paycheck. The so-called core PCE is the central bank’s go-to inflation metric. It is derived by netting out the necessities of food and energy from personal consumption expenditures. But the core PCE also minimizes the weight of rent and over-emphasizes health care due to Medicaid and Medicare’s inputs.