How to Measure Inflation

I have always rather disliked the saying, “What gets measured gets managed.” On one hand, it is a truism. On the other hand, it is misleading in many ways. Today’s issue, inflation, is a great example. How we manage it depends very closely on how we measure it, which is quite true. But it begs the question as to how we should measure it. I might rephrase the saying, in this case, as, “What gets appropriately measured gets effectively managed.” This phrasing still has issues but is much closer to what we actually need to do. Beyond this, we start to get into pedantry, if we are not already there.

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