OT - Dow plunges 1,175 - worst point decline in history

[verticaldoug]

Originally Posted by rice rocket

Crappy NYT headline.

Airfares affect such a small portion of the population, a 3% drop shouldn't even register on the CPI.


Edit:

https://www.bls.gov/cpi/factsheets/airline-fares.htm

0.481% of the market basket, so net impact of -0.01%?

https://www.bls.gov/news.release/cpi.t01.htm



This chart has the weights for various components of the index as of Dec 2022 this release.

Energy is 7.8% of the index and down 4.5%. So a total contribution of -0.35% of the -0.1% decline.

Airlines are 0.63% of the index and down 3.1%. So total contribution was -0.02%. Energy effect was 17.5x larger.

Non-alcoholic beverages had a bigger negative effect on prices than airlines.

Journalists remain numerically challenged.


*NOTE* RICE ROCKET number is the weight in DEC 2021, the current weight in the basket is 0.63 Dec 2022

The fed really needs to see Rent/Rent Equivalent in Core CPI decline. It is still at 0.8% which is too high.