Earlier in the day, markets were buoyed by good jobless claims and a CPI report, along with earnings.
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Given that the Japanese monetary policy is already accommodative, a new CPI or inflation target may not have a commanding impact.
The idea of a chained CPI has been around for some time, but is now a serious consideration in the development of the next budget.
Among those who would see a reduction in VA benefits with a chained CPI are 3.2 million disabled veterans, 310, 000 low-income veterans who receive a pension and 350, 000 surviving spouses and children.
In its place, a chained CPI would calculate inflation more conservatively, and thus, yield significant COLA savings.
This results in a lower CPI reading than RPI in nearly all cases.
Those in favor of a chained CPI argue that the current index, which considers the spending habits of urban wage earners and clerical workers, is outdated.
While the CPI at one time was the measure desired by the public, government efforts turned the CPI away from measuring the price changes in a fixed-weight basket of goods and services to a quasi-substitution-based basket of goods, which destroyed the concept of the CPI as a measure of the cost of living of maintaining a constant standard of living.
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At the government's request, last year the IMF sent experts to help it plan a new national CPI.
And yet fixed-rate mortgages are still rather common, and two attempts to build a market in CPI futures have fizzled.
Most experts agree that the Superlative CPI provides a more accurate measure of the average change in the cost of living than the standard CPI.
This will be a version of the current CPI index, but adjusted to measure changes in the cost of buying and owning a home.
As Warren Buffett has said, if you are anorexic and ride a bike, core CPI is great.
From 1971 to 1981, the CPI leapt a phenomenal 125%, 8%-plus per annum.
The Labor Department said the CPI fell a seasonally adjusted 0.1% in October overall, while the core rate rose 0.1%.
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In the euro area both CPI and Core CPI on a year-over-year basis were in line with expectations at 1.4% and 0.9% growth, respectively.
Ever since the CPI hit a high of 11% in 1980.
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Proponents say chained CPI is a more accurate way to measure inflation than the way it's done now, which they say overstates growth in consumer prices.
The use of hedonic quality modeling in adjusting the prices of goods and services has destroyed the concept of the CPI as a measure of out-of-pocket expenses.
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Between 1970 and 1980 the officially reported CPI rose a whopping 112%, and prices of our basket of goods and services rose by 117%, just 5% faster.
The CPI was a more "appropriate" measure for changes in the cost of living of pensioners and benefit recipients than the retail price index (RPI), he said.
What's the difference between a "chained" CPI and the CPI?
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The CPI, a number based on a sample (or basket) of goods and services from a sample of sales outlets in a sample of locations for a sample of times, across the country.
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This data took the CPI to a 29-month high of 4.4% and perhaps of greater concern the CPIY annual rate, which excludes the effects of changes in indirect taxes, rose even more sharply.
Chancellor George Osborne described CPI as a "more appropriate" measure of inflation - for state benefits and tax credits as well as public sector pensions - which would save the government money by producing smaller increases each year.
The virtue of this plan is that it would be similar to the treatment of COLAS In private industry: workers whose wages are indexed to inflation generally get raises equal to only a portion of the CPI increase.
The chained CPI, which takes into account adjustments consumers make to blunt the impact of price increases (say, for example, buying more chicken and less beef) , has averaged about 0.3% less a year than the CPI now used for Social Security cost of living adjustments and tax changes.
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At least, that is likely if hospital costs keep climbing as rapidly as they have been doing for the past several decades (in March, while the CPI as a whole went down for the first time in 17 years, its medical-care component went right on increasing at a 12% annual rate).
After pressuring Governor Masaaki Shirakawa, the Bank of Japan came through, setting a formal 2% inflation target (CPI contracted 0.2% in 2012) and unveiling a new open-ended asset purchase program (QE).
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