Consumer Price Index Gets Us Hot

It may be hard to sleep tonight, tomorrow the Feds release the Consumer Price Index (C.P.I.) at 8:30 am EST. We’ll post the results on The Consumerist but you can also hit refresh over here.

Pictured is Secretary of Labor, Elaine L. Chao, who is likewise reportedly, “totally stoked to be dropping mad economic science on the streets.”

Bloomberg estimates a .5% increase in the C.P.I., which measures urban price changes in a core “basket” of goods: Housing 42%; Food 18%; Transportation 17%; Medical Care 6%; Apparel 6%; Entertainment 4%; Other 7%.

Here’s hoping your wages got at least .5% increase this year, too. Salut, oh C.P.I, you indefatigable bastard.

Comments

Edit Your Comment

  1. L_Emmerdeur says:

    If only the CPI wasn’t the most fudged, bullshit numbers in a world where every government statistic is pretty much a blatant lie. The “housing” component totally ignores purchase prices, instead using “Owner-Equivalent Rent”, which has essentially removed any real estate bubble effect (or any house appreiciation effect) from the CPI since around 1984. Instead, they assume the cost to an owner to own a home is what that owner would pay if they rented the same home. Surprise! Benign inflation ensued around 1984.

    In most of the country, the current cost to rent is about 50% of the cost to own, which means CPI severely understates true home ownership costs. If you factored this ownership cost back in, along with the price appreciation in the last few years, you’d get an annual CPI close to 6% – and that’s a lowball estimate.