The CPI is influenced by the political winds (e.g. right now, it rather heavily weights technology items, and down-weights fuel and food costs, which are experiencing much greater price inflation). The commodity price index might just be a better indication of actual inflationary pressures for real people.
As it affects the short term, that's a good point. I'd make the argument that CPI is a better long-term indicator but over enough time the two indexes should show the same average rate of growth.
Timr: just out of curiosity, what start-up are you working for in Seattle?
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The CPI is influenced by the political winds (e.g. right now, it rather heavily weights technology items, and down-weights fuel and food costs, which are experiencing much greater price inflation). The commodity price index might just be a better indication of actual inflationary pressures for real people.
As it affects the short term, that's a good point. I'd make the argument that CPI is a better long-term indicator but over enough time the two indexes should show the same average rate of growth.
Timr: just out of curiosity, what start-up are you working for in Seattle?