There has been a lot of discussion recently on “measures” of inflation. The popular debate usually revolves around the particular “index” which the Fed should target or use as an indicator of future inflation. Should the Fed look at “headline” inflation or at “core” inflation?
Just to give a few (of many available) examples, in a recent post Steve Williamson concludes:
I don’t see anything solid that justifies the Fed’s focus on core inflation measures. Indeed, one could, I think, make a better case for looking at headline inflation measures.
In a NYT op ed, Laurence Meyer, former Fed governor writes:
So in the ’70s, increases in food and gas prices affected both core and overall inflation. Some believe this is still the case today. But it isn’t. Since the inflationary era ended in the early ’80s, the Fed has earned a reputation for keeping inflation in check. For…
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Utopia, you are standing in it! 
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