Canadian Jennifer @cdntradegrljenn "There’s an odd twist with this weeks CPI. The US BLS has announced that coffee prices will no longer be factored into CPI inflation data. In fact this is the first time in history that coffee will be excluded. Coffee hit a 78% price increase over the last 6 months, with its high hitting in April when this announcement was made. Is this how it works now? If index components get too high they will simply drop them from the index?
$SPY $QQQ $SBUX"
CORRECTION: Coffee prices are NOT being removed from the CPI computation, thanks to clarification from @BLS_gov
ReplyDelete.
Rather, the BLS has discontinued specific coffee package size categories from their CPI computation.
Because of changes in the way items (such as coffee) are packaged, the BLS will sometimes discontinue specific package size categories.
Therefore, coffee prices will still be factored into the CPI inflation data being reported tomorrow.