“…Aside from food and energy, it would also exclude around 2/3 of other goods consumption and 1/3 of other services consumption-dropping items such as used car margins, tobacco, furniture, life and car insurance, imputed financial services, and most transportation services. 4 The alternative approaches to PCE inflation examined by Detmeister (2011) included various exclusion indexes, trimmed mean and weighted medians, variance-weighting inflation, weights based on regression coefficients, cost of nominal distortions weighting (CONDI), trend inflation from Stock and Watson's UC-SV model, Michigan inflation expectations, and component smoothing. These alternatives will be compared to the current approach later in this paper, most notably in figure 2.…”