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By A Smith (anonymous) | Posted May 08, 2012 at 13:28:33 in reply to Comment 76630
>> Take all the unnecessary "consumer goods" out of inflation and you'll see the real story.
The CPI is weighted according to what average households actually purchase, not on whether or not it is "necessary". If we calculated inflation based on what you propose, then it would be much higher, but it would also be useless in calculating the actual purchasing power of Canadians.
You may argue that consumer goods aren't necessary, but then why are people buying them? If gas/heat/food are more important than consumer goods at any amount, then why aren't people limiting their purchases to those core goods?
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