Mises Institute Criticizes Bureau of Labor Statistics Inflation Measure
What happened
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Sapozhnikov of the Mises Institute criticized the Bureau of Labor Statistics' inflation measure, calling it inaccurate, outdated, and misleading by design.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.
From kitco.com
Why it matters
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.
From kitco.com
Who's involved
- Mises InstituteProvides economic analysis and critiques government economic models.
- Bureau of Labor StatisticsPublishes key economic indicators, including consumer price index data.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Social Security AdministrationSpeculative
The Social Security Administration might adjust benefits based on the Bureau of Labor Statistics CPI-W data used for Cost of Living Adjustments.
- Money Metals ExchangeSpeculative
Money Metals Exchange might see increased demand for bullion if the critique regarding fiat systems gains traction.
Keep exploring
The entities involved
-
Mises Institute
economic education organization
Nothing else this week.
-
Bureau of Labor Statistics
US government agency
Related events
- The National Association of Home Builders utilized Bureau of Labor Statistics data to provide context regarding current inflation trends.
- Inflation data tracked by BLS is causing economic strain, leading to increased bankruptcy filings and prompting legislative action.
- FactSet and the Bureau of Labor Statistics monitor and comment on annual inflation rates.
- BLS inflation data is being used to inform COLA calculations for Social Security and Medicare.
- BLS data informs inflation projections and Redfin reports median home sales price in Los Angeles.