{
  "id": 16752230,
  "title": "“Core” CPI Challenge",
  "url": "https://urgent.news/2026/10/27/core-cpi-challenge",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-27T12:30:09.000Z",
  "source": {
    "name": "The Big Picture",
    "slug": "the-big-picture",
    "url": "https://ritholtz.com/2026/10/core-cpi-challenge/"
  },
  "original_language": "en",
  "account": "In a recent discussion, I highlighted the history of governments purposely underreporting inflation figures. This led to considerable disagreement, particularly considering the timeline of major changes I provided: 1944-45 Mitchell Committee, 1953 Postwar Basket Revisions, 1961 Stigler Committee, 1972-75 Core Inflation, 1983 Owners' equivalent rent, 1995-96 Boskin Commission, 2017 Chained CPI as fiscal policy, 2000 Fed shifted target to PCE, 2004 Fed shifted target to Core PCE, and 2020-26 Annualizing. No comparable attempts to overstate inflation were identified. Consequently, focusing on Core inflation seemed to be an intentional strategy to deceive.\n\nThose who dismissed the October 14th CPI figure of 3.7%, particularly for Food & Energy, turned their attention to the smaller Core figure of 2.6%. To those who adopt this approach, I present my Core CPI challenge: You may concentrate on Core inflation, provided you restrict your consumption to the items included in the Core PCE/CPI. Until the November 10 CPI release, abstain from purchasing headline goods, including gas and diesel. Similarly, avoid consuming the recent 6.3% PPI compared to the 5% Core PPI. You may only indulge until November 13, when you can resume eating, traveling, heating, and using electricity. What constitutes the Core? You can purchase new and used cars, trucks, tires, and replacement parts, but not gasoline. Shop for clothing, jewelry, watches, and shoes; consider walking as a viable option! While you can't process transactions without energy, you can buy computers, smartphones, televisions, audio equipment, software, medical goods, prescription and over-the-counter drugs, recreational items, toys, sporting equipment, musical instruments, books, pet products, textbooks, school supplies, shampoo, toothpaste, cosmetics, razors, and perfume. Purchase home furnishings, mattresses, carpets, appliances, and household supplies. And bicycles; you can transport your new mattress home on a bike! However, no E-Bikes are permitted. Tap water is available for fasting and exercise, which can be beneficial. If you smoke, tobacco and alcohol are part of the Core, so they are included in your choices. This is my Core CPI challenge for anyone discussing inflation: Refrain from using the full headline inflation reading to discuss inflation excluding food and energy, and you must exclude these categories until the next print. Below, you'll find a useful set of inflation report calendars to inform you when you can consume gas, electricity, or food again.",
  "summary": "Last week, I mentioned the long, distasteful history of governments deliberately underreporting inflation data. It drew surprising pushback — especially given the chronological list I shared: 1944-45: Mitchell Committee 1953: Postwar Basket Revisions. 1961: Stigler Committee 1972-75: Core Inflation 1983: Owners’ equivalent rent 1995–96: Boskin Commission 2017: Chained CPI as fiscal policy 2000:…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}