Saturday, April 5, 2008

Real Inflation

Voltron says: the government often changes the way inflation is computed to make the numbers lower. They currently exclude food and energy prices from "core" inflation. Here is a graph of inflation courtesy of which also has graphs of real unemployment and M3 (the money supply figure the Fed stopped producing last year because it was "too hard")

This is why inflation linked treasuries are not a perfect hedge against inflation.

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