Inflation for Real

by: Jim Letourneau

Inflation statistics have become a source of much controversy. There is a general consensus that the current methodology of measuring inflation in the U.S. is underreporting what is happening out in the real world. Enter the Billion Prices Project @ MIT, which cleverly check prices of items online and tracks the price changes. This data is more timely and probably less biased than official government statistics.

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Daily Price Online Price Index

It will be interesting to see if the run up of prices into Valentine’s Day (where there is an annual bubble in rose prices) keeps rising. Inflation would not be unexpected, given commodity price increases. Keep your eye in this indicator as it leads the official statistics.

“The only statistics you can trust are those you falsified yourself” -- Winston Churchill.