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Is it time for negative hedonic adjustments?

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The CPI captures price changes for a fixed basket of goods and services through time. But some items need hedonic adjustment to capture changes in quality. Hedonic adjustments are limited to apparel, electronics, and rent. But other items could use adjustment too. If consumers perceive inflation is higher than reported, it could lead to a breakdown in inflation expectations.

Ned Davis Research | Fixed Income | Focus | Bi-Weekly

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