4 ms·

FED changed the weightings in 1980, notably if I remember correctly they greatly reduced the importance of housing prices (not what they call "housing" category

FED changed the weightings in 1980, notably if I remember correctly they greatly reduced the importance of housing prices (not what they call "housing" category, but the price of the shelter itself) There was some article coming out some days ago about how when using old CPI calculations inflation is actually 10%, and wages are lagging extremely behind inflation when using old CPI.

Bjartr 6y ago
Are there "unofficial" weightings available so that inflation could be analyzed under a different set of assumptions?
- Qasaur 6y ago
  Yes: http://www.shadowstats.com/alternate_data/inflation-charts http://www.shadowstats.com/alternate_data/inflation-charts This site calculates CPI using the old way of calculating it, and according to that method the inflation rate is closer to 10%.
  - em500 6y ago
    That's what the site author claimed he does. Others claim that what he actually does is just adding a few percentage points to the official stats[1]. Among academic economists, the site author is largely regarded as some kooky conspiracy theorist[2]. Personally I just see him more as small time business man making a nice living from satisfying some market demand for figures that proof government is lying to you. For those who want to find out for themselves, here's the raw BLS data[3] and methodology[4]. [1] https://azizonomics.com/2013/06/01/the-trouble-with-shadowstats/ https://azizonomics.com/2013/06/01/the-trouble-with-shadowst... [2] https://www.thestreet.com/economonitor/emerging-markets/deconstructing-shadowstats-why-is-it-so-loved-by-its-followers-but-scorned-by-economists https://www.thestreet.com/economonitor/emerging-markets/deco... [3] https://www.bls.gov/developers/home.htm https://www.bls.gov/developers/home.htm [4] https://www.bls.gov/opub/hom/pdf/cpihom.pdf https://www.bls.gov/opub/hom/pdf/cpihom.pdf

Bjartr 6y ago

Are there "unofficial" weightings available so that inflation could be analyzed under a different set of assumptions?

Qasaur 6y ago
Yes: http://www.shadowstats.com/alternate_data/inflation-charts http://www.shadowstats.com/alternate_data/inflation-charts This site calculates CPI using the old way of calculating it, and according to that method the inflation rate is closer to 10%.
- em500 6y ago
  That's what the site author claimed he does. Others claim that what he actually does is just adding a few percentage points to the official stats[1]. Among academic economists, the site author is largely regarded as some kooky conspiracy theorist[2]. Personally I just see him more as small time business man making a nice living from satisfying some market demand for figures that proof government is lying to you. For those who want to find out for themselves, here's the raw BLS data[3] and methodology[4]. [1] https://azizonomics.com/2013/06/01/the-trouble-with-shadowstats/ https://azizonomics.com/2013/06/01/the-trouble-with-shadowst... [2] https://www.thestreet.com/economonitor/emerging-markets/deconstructing-shadowstats-why-is-it-so-loved-by-its-followers-but-scorned-by-economists https://www.thestreet.com/economonitor/emerging-markets/deco... [3] https://www.bls.gov/developers/home.htm https://www.bls.gov/developers/home.htm [4] https://www.bls.gov/opub/hom/pdf/cpihom.pdf https://www.bls.gov/opub/hom/pdf/cpihom.pdf