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Core CPI: excluding food, energy ... and used cars?

Author

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  • Karen Alvarez
  • Richard Peach

Abstract

Although used car prices represent only a small portion of the consumer price index, their extreme volatility has had a major impact on the measured inflation rate. To explain this relationship, the authors describe how used cars are treated in the CPI and explore what might cause the wide swings in used car prices.

Suggested Citation

  • Karen Alvarez & Richard Peach, 1996. "Core CPI: excluding food, energy ... and used cars?," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 2(Apr).
  • Handle: RePEc:fip:fednci:y:1996:i:apr:n:v.2no.4
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    File URL: https://www.newyorkfed.org/medialibrary/media/research/current_issues/ci2-4.pdf
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    References listed on IDEAS

    as
    1. repec:ucp:bknber:9780226304557 is not listed on IDEAS
    2. Pollak, Robert A., 1989. "The Theory of the Cost-of-Living Index," OUP Catalogue, Oxford University Press, number 9780195058703.
    3. Genesove, David, 1993. "Adverse Selection in the Wholesale Used Car Market," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 644-665, August.
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    Citations

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    Cited by:

    1. Sylvain Prado, 2010. "A Family Hitch : Econometrics of the New and the Used Car Markets," EconomiX Working Papers 2010-4, University of Paris Nanterre, EconomiX.
    2. Todd E. Clark, 2001. "Comparing measures of core inflation," Economic Review, Federal Reserve Bank of Kansas City, vol. 86(Q II), pages 5-31.

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