In the upcoming debate on long term deficit reduction, one of the proposals that is being discussed by both Democrats and Republicans is a change in the way inflation is measured by the government. The change proposed is a move from the current Consumer Price Index (CPI) to a "Chained CPI" that supposedly would more accurately reflect changes in consumer buying habits. The current CPI measures the average price change for a static basket of goods and services and allegedly does not reflect the reality of consumers "trading down" or substituting lower priced alternatives when prices in some commodities or services go up in price. The conclusion is that the ... Log in to view full article.