Inflation- CPI and PPI

Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

Inflation Headlines Vs. Reality Reveals Outright Government Fraud

Core CPI Vs. Reality - Click to enlarge

The US Government and the Fed measure inflation in a way that is tantamount to reverse Robin Hood theft. Government measures cheat savers and particularly senior citizens while subsidizing the wealthiest big banks and leveraged speculators. They do so by giving the Fed an excuse to perpetuate the ZIRP. Follow the money. Find the profits!Liquidity is…

Here’s Proof That Core CPI Is Really +3%, Not +1.8%

Undermeasurement of Rent Increases Grows

The BLS reported today that Owners Equivalent Rent, a fictitious input to the CPI which, with the similarly formulated lesser item rent of primary residence accounts for nearly 32% of the total weight in the index, rose by 3% between July 2014 and July 2015, including a seasonally adjusted, fictitious +0.3% month to month in June. Follow the…

This Chart Shows How Badly CPI Understates Inflation

Measuring The Inflation Reality Gap

Now that the CPI fiction has been posted, it requires that this post I wrote the other day be recycled for a second reading. The government reported and Big Media press release repeaters dutifully disseminated today that CPI Core rose by 0.1% in July on a seasonally adjusted basis. Below my August 14 report along with the…

This Chart Shows How The Fed Fiddles On Inflation While The Middle Class Burns

CPI, PCE and Reality- Click to enlarge

There are a lot of ways to define “inflation.” There are a lot of ways to measure “inflation.” Follow the money. Find the profits!Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through Wall Street. So if you want to know the direction of the next big…

Fed Is Not Just Behind The Curve, It’s Driving The Bus Over The Cliff

So the Fed didn’t raise rates again. And the timing of the rate increase will be data dependent. Ho hum. Follow the money. Find the profits!Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through Wall Street. So if you want to know the direction of the…

Mind Boggling Chart O’ Da Month- Inflation Is Soaring!

Inflation is Worse Than They Say- Click to enlarge

One of my pet themes over the years has been the ridiculous conventional economic definition of inflation that excludes asset prices, an absurdity which the BLS then compounds by suppressing any potential echoes of asset price inflation in the CPI, particularly with housing. It does this by giving the housing component the largest weight in the…

There’s No Inflation? Rents Rise 4.3% Year to Year But They Don’t Count

Owners Equivalent Rent vs. Market Rent- Click to enlarge

Median market rent for US rental housing units rose 4.3% year over year in the first quarter of 2015, according to data released today by the US Census Bureau. All of the gain came in the latest quarter, as rents were nearly flat for the previous three quarters. The first quarter increase compares with an…

About That Deflation

"Core" PPI - Click to enlarge

When inflation is too high the Fed and Wall Street conomists always de-emphasize that by keeping the focus on “core” inflation, that is excluding food and energy. So in the spirit of Fed and Wall Street conomics, I thought it would be fun and edumacational to show a chart of “core” finished goods PPI. Follow…