01-28-2023, 02:14 AM
Paul Krugman reports statistics on inflation may be misleading
<!-- SC_OFF --><div class="md"><p>Writing in todays NYT, Krugman discusses how partisanship enters hard data. But, in addition, housing costs, a 40% part of core CPI and a third of CPI, called “owners equivalent rent” is based on past data and lags market rent by about a year. The impact is that rents skyrocketed due to Covid last year. That statistic has now leveled off and may be declining. So official cost statistics may be overstated. Krugman recognizes the Fed looks at Personal Consumption Expenditure Deflator and is now focused on imputed prices of certain things like financial services which do not include rent. Nevertheless, housing data is not adding at the rate it was and may actually fall. The Employment cost index comes out on January 31st and analysts, according to Krugman, should consider that, like most statistics, it is just another estimate. <a href="https://www.nytimes.com/2023/01/27/opinion/inflation-housing-data.html">https://www.nytimes.com/2023/01/27/opinion/inflation-housing-data.html</a></p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Purpleprose180"> /u/Purpleprose180 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/10mv74p/paul_krugman_reports_statistics_on_inflation_may/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/10mv74p/paul_krugman_reports_statistics_on_inflation_may/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>Writing in todays NYT, Krugman discusses how partisanship enters hard data. But, in addition, housing costs, a 40% part of core CPI and a third of CPI, called “owners equivalent rent” is based on past data and lags market rent by about a year. The impact is that rents skyrocketed due to Covid last year. That statistic has now leveled off and may be declining. So official cost statistics may be overstated. Krugman recognizes the Fed looks at Personal Consumption Expenditure Deflator and is now focused on imputed prices of certain things like financial services which do not include rent. Nevertheless, housing data is not adding at the rate it was and may actually fall. The Employment cost index comes out on January 31st and analysts, according to Krugman, should consider that, like most statistics, it is just another estimate. <a href="https://www.nytimes.com/2023/01/27/opinion/inflation-housing-data.html">https://www.nytimes.com/2023/01/27/opinion/inflation-housing-data.html</a></p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Purpleprose180"> /u/Purpleprose180 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/10mv74p/paul_krugman_reports_statistics_on_inflation_may/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/10mv74p/paul_krugman_reports_statistics_on_inflation_may/">[comments]</a></span>