Deflation?

[phk]

The above graph, which was published by the Cleveland Fed shows inflation as gauged by the Consumer Price Index (with a median measure as opposed to the mean). As we all know by now the average of any data set can be thrown off by a few extreme outliers so the primary implication for this is that the median is a more robust statistic to utilize to estimate the true central tendency in the data.

Right now, the two measures of inflation are diverging substantially. The standard CPI shows deflation over the past year, but that average is due to a few anomalous sectors, such as energy. If you look at the median CPI, which shows what a more typical price is doing, the inflation rate looks fairly normal and within historical norms.

[Citizen James]

What graph?

Tell me, are you Professor Greg Mankew, or merely plagiarizing his blog post?

[phk]

What graph?

Tell me, are you Professor Greg Mankew, or merely plagiarizing his blog post?

Yes