How does the Fed (or whoever is calculating the inflation rate) take into account factors like people buying less expensive brands and other mitigation efforts people make to avoid the full impact of inflation? For instance, imagine you normally buy premium gas for your car but, with increased gas prices, you buy regular unleaded instead? Does the inflation rate only reflect the change in prices or does it account for changes in the composition of what people actually end up buying?
[link] [comments] https://www.reddit.com/r/stocks/comments/13hvrhj/does_inflation_rate_reflect_downtrading/
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