And if pennies were still made of copper, as they were prior to 1983, they'd cost even more than nickels to produce.
I s'pose nobody is now willing to accede to my notice of Stealthflation (TM)?"
Not me, man, sorry. "Doctor" Copper is a proxy for world economic growth. I s'pect Zinc is similar.
I'm downright Bernankian on Core PCE, making me a wierdo among the wierdos who support Rep. Ron Paul. It's a wonder anybody will drink coffee with me anymore.
Ned, do I hope you are right.
Heard a news report this morning about gas prices going up already, and $4 regular/$5 premium by summertime. Also mentioned was "health care and food prices rising" with the word "inflation" bandied about in there somewhere.
But as I understand it, you're saying the price of everything can go up without being indicative of currency devaluation. Instead it represents only a higher demand for, everything. Right? We 'mericans just have to get used to greater competition for the trading of our dollars for goods from the dollars of other nations?
Please correct my oversimplification as required.
True for certain values of "everything." If everything = food + fuel + health care, then everything can cost more without inflation. (Not coincidental that you picked three heavily regulated commodities. Toss in tuition "inflation" while you are at it.)
Food and fuel are excluded from core CPI and the core PCE deflator for their volatility and you are in great company calling "shenanigans" on that. I'd say all "price basket" measures of inflation are flawed, but valuable enough that you pick one with the least flaws and make use of it.
My many economic betters are going to wince at this, but I still hold that the inflation missed by core PCE is offset by hidden disinflationary effects of technology and trade. Like leap year, it is not perfect, accurate, or fair but it holds the system in balance.