Inflation Figures: A Puzzle or a Problem?

The Bureau of Labor Statistics (BLS) faced challenges filling in missing data for October and November, relying on old numbers and estimates to complete the picture.

Data Collection Issues

• October Data: BLS admitted they didn't collect new data.
• November Data: They struggled to gather all necessary information.
• Filling Gaps: Used old data and approximations, including the "Owners Equivalent of Rent" (OER), a significant factor in inflation calculations.

Impact of OER Drop

• September Drop: OER showed a significant decline.
• Carried Over: This drop was extended to October and November, potentially making inflation numbers appear lower than reality.

BLS Efforts and Confidence

• Late Collection: BLS tried to gather November data later in the month.
• October Data: Still relied on old data.
• Uncertainty: They mentioned "attempting" to collect November data, indicating low confidence.

Broader Implications

• Social Security and Investments: Inflation affects payments and economic decisions.
• Economic Perception: Influences views on GDP, spending, and overall economic health.

Diverging Views

• Critics: Argue it reflects broader economic decline, pointing to income inequality and lack of press freedom.
• Supporters: Believe BLS is doing their best with available data, emphasizing the need to look at the bigger picture.

Conclusion

The recent inflation report highlights more than just numbers—it reflects deeper economic and social issues.