Mises Institute Criticizes Bureau of Labor Statistics Inflation Measure

Vasilii Sapozhnikov of the Mises Institute criticized the Bureau of Labor Statistics' inflation measure, calling it inaccurate, outdated, and misleading by design. Sapozhnikov noted that the Bureau of Labor Statistics reported consumer prices rose 0.1 percent in July and 3.4 percent over the previous twelve months. He suggested using the ratio between the Dow Jones Industrial Average and the gold price as a reliable alternative for measuring the economy.

The critique challenges the primary measure used by governments and investors to benchmark investment decisions and monetary policies. Sapozhnikov argued that when the American stock market is priced in gold, it has lost roughly a third of its value in two and a half years, despite setting nominal records.