[–] jjgreen 4y ago ↗ Quite a bit of technical content there, but the key property of CPI is that it uses the geometric mean rather than the arithmetic [1]. The reason why this is done is clear once you know this inequality: [2][1] https://touchstoneblog.org.uk/2010/06/the-difference-between...[2] https://en.wikipedia.org/wiki/Inequality_of_arithmetic_and_g...
[–] berenza 4y ago ↗ there's a recently developed alternative inflation measure here that looks rather good. https://app.truflation.com/
2 comments
[ 3.1 ms ] story [ 14.6 ms ] thread[1] https://touchstoneblog.org.uk/2010/06/the-difference-between...
[2] https://en.wikipedia.org/wiki/Inequality_of_arithmetic_and_g...