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Sunday, February 21, 2010

Inflation Going Down? -- Expect Revision Shortly!

A Math Problem at the Labor Department?

Friday's inflation report generated all sorts of headlines about core consumer prices falling for the first time since 1982. In looking at the screen shot of the detailed data from the Labor Department below, there is clearly some sort of a math problem associated with changes that were recently made to category weightings (note that only the relevant data is included below from a much larger table)

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