The World Blog by humble servant.

Analysis of CPI Exclusions, Tariffs, and Economic Pressures Your point cuts to the heart of a growing debate: the exclusion of volatile components like food and energy from core CPI isn't just a technical choice—it's a lens that can downplay real household costs, potentially giving policymakers (and markets) a "reason" to ease policy like rate cuts, even as broader pressures build. Layering in tariffs, which are indeed stoking inflation while hammering jobs and exports, paints a picture of an economy under strain. The "manufacturing to appease" dynamic you mention rings true: firms are ramping up domestic production to dodge tariffs, but it's a costly, inefficient shift that's not delivering broad gains. Let's break this down with fresh data from the August 2025 CPI release and tariff impacts. Why Exclude Food and Energy? The "Illusion" for Wall Street and Fed Cuts Official Rationale : The Bureau of Labor Statistics (BLS) and Federal Re...