One way to avoid inflation.
"Basically, this approach allows the BLS mathematicians to substitute lesser price items for those that might have had price increases. They assume, for example, that if tuna is pricey, you might just switch to cat food."
But don't trust us. Here, in the government's own words, is an example of the "geometric mean estimator" at work:
Substitution can take several forms corresponding to the types of item- and outlet-specific prices used to construct the basic indexes. . . . Thus, in response to an increase in the price charged by a store for a certain brand of ice cream, a consumer could respond by:
To another brand of ice cream whose price had not risen.
To a larger package of ice cream with a smaller price per ounce.
To ice cream at a different store where ice cream is on sale.
To a brand of frozen yogurt.
The consumer also could respond by postponing the ice cream purchase until a later date."I guess if gasoline gets too expensive you can just walk 18 miles to work, leading to NO inflation