Thursday, October 18, 2012

Does MIT Know Something about Rising Prices that the BLS Doesn't?

The Billion Prices Project data is starting to diverge from Bureau of Labor Statistics data. The Billion Prices Index for absolute price data, annual price inflation and monthly price inflation are all breaking out to the upside versus the CPI number.

The move isn't large enough to completely rule out data noise, but it is something to watch. The data can be found here.

1 comment:

  1. These are interesting trends. I think many times the guy at shadow stats makes a greater case for how inflation is calculated today as compared to previous years in the past. I would seriously check out that shadow stats page and compare that to the billionaire price index. I remember Krugman tried pointing to that MIT index in his favor too. CPI is already distorted, shadow stats has it right. Albeit, it seems once inflation makes itself pronounced, there is no way to further distort the numbers in the statists' favor. We are seeing this start to manifest itself.