Post by unlawflcombatnt on Nov 16, 2006 15:07:28 GMT -6
Today's Consumer Price Index report is yet another example of the government's own WMDs (Weapons of Mass Deception). Though the overall 1-month reading was posted as -0.5% for October, the negative was due exclusively to reduced fuel prices and transportation prices (which was largely due to automobiles.) Stripping out the fuel and transportation prices, the monthly increase would have been +0.215, and the annualized rate would have been +2.58 %. However, the distortion does not stop there.
The actual 1-month increase in apparel prices was +1.3% (or an annualized increase of +15.6%). However, the "seasonally-adjusted" number was magically reduced to a -0.7% (or an annualized rate of -8.4%). If apparel prices are excluded from the CPI, along with fuel & transportation prices, the 1-month increase in the CPI is +2.66 (or an annualized rate of +3.2%). The actual numbers can be seen at BLS-CPI-U
Once again, the government has worked overtime to massage the CPI numbers down to a lower the reading. The price of food, shelter, and non-durable goods is still rising. However, by downwardly manipulating CPI and inflation numbers, the government can deceive the public about how well the economy is performing. Downward revision of inflation also helps overstate real GDP growth.
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On a separate note, the downward revision of September's Retail Sales numbers on Tuesday by $2.2 billion reduced 3rd quarter GDP growth directly by $2.2 billion. The direct subtraction of that $2.2 billion reduces the previously stated 3rd quarter GDP growth from 1.6% down to 1.5%. Expect it to be downwardly revised even further, once the artifactual increase in auto sales is corrected.
The actual 1-month increase in apparel prices was +1.3% (or an annualized increase of +15.6%). However, the "seasonally-adjusted" number was magically reduced to a -0.7% (or an annualized rate of -8.4%). If apparel prices are excluded from the CPI, along with fuel & transportation prices, the 1-month increase in the CPI is +2.66 (or an annualized rate of +3.2%). The actual numbers can be seen at BLS-CPI-U
Once again, the government has worked overtime to massage the CPI numbers down to a lower the reading. The price of food, shelter, and non-durable goods is still rising. However, by downwardly manipulating CPI and inflation numbers, the government can deceive the public about how well the economy is performing. Downward revision of inflation also helps overstate real GDP growth.
~~~~~~~~~~~~~~~
On a separate note, the downward revision of September's Retail Sales numbers on Tuesday by $2.2 billion reduced 3rd quarter GDP growth directly by $2.2 billion. The direct subtraction of that $2.2 billion reduces the previously stated 3rd quarter GDP growth from 1.6% down to 1.5%. Expect it to be downwardly revised even further, once the artifactual increase in auto sales is corrected.