Tuesday, February 19, 2008

Our new prime minister has new ideas on fighting inflation

He is blaming statisticians for calculating it in a wrong way. Namely, he thinks that it's wrong to include cigarettes into CPI, because not everyone smokes.

Well, the increase in tobacco taxes was indeed the main contributing factor to January's inflation numbers. But, over the entire year, a "non-smoker's inflation" would still be 13.5%/year. Which is less than 15.8%/year but is still a lot more than it should be.

1 comment:

Ebenezer said...

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