MUNKNEE ON : FACEBOOK   TWITTER
  |   Sign-up for Automatic Receipt of Articles
Your Key To Making Money!
 
Friday, March 25th, 2011 | Posted by

Official and ShadowStats Monthly Inflation Rates: 1872 to Present

Latest Annualized Official CPI Inflation Rate is 1.63% vs. ShadowStats’ Alternative Rate of 9.07%!

[There is a considerable difference between the official BLS inflation rate (1.63%) and the ShadowStats' alternative method of calculating consumer prices (9.07%) but] I believe that the optimum method is probably somewhere between the two. [Let me explain.] Words: 390

So says Doug Short (www.dshort.com) in an article* which Lorimer Wilson, editor of www.munKNEE.com, has further edited ([  ]), abridged (…) and reformatted below for the sake of clarity and brevity to ensure a fast and easy read. (Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.) Short goes on to say:

The latest official annualized inflation rate of 1.63%… marks the 16th month of mild inflation after a streak of eight consecutive months of deflation. The annualized rate is well below the 3.97% average since the end of World War II. We have been experiencing a general trend lower from the January 2010 annualized rate of 2.63%.

Sign up for your FREE weekly “Top 100 Stock index, Asset Ratio & Economic Indicators in Review”

The Bureau of Labor Statistics (BLS) has compiled CPI data since 1913. Our chart below shows inflation back to 1872 by adding Warren and Pearson’s price index for the earlier years.  This look further back into the past dramatically illustrates the extreme oscillation between inflation and deflation during the first 70 years of our timeline.

Click to View

The ShadowStats Alternate Rate of Inflation is 9.07%!

The chart below  includes an alternate look at inflation without the calculation modifications the 1980s and 1990s (Data from www.shadowstats.com).

Click to View
Click for a larger image

Who in the world is currently reading this article along with you? Click here to find out. 

Conclusion

Government policy, the Federal Funds Rate, interest rates in general and decades of major business decisions have been fundamentally driven by the official BLS inflation data, not the alternate CPI. For this reason I believe that the optimum method for calculating consumer prices is probably somewhere between the revised BLS method and the historic method preserved by John Williams of ShadowStats which, while interesting, is not authoritative.

*http://dshort.com/inflation/inflation-update.html

Editor’s Note:

  • The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
  • Permission to reprint in whole or in part is gladly granted, provided full credit is given as per paragraph 2 above.
  • Sign up to receive every article posted via Twitter, Facebook, RSS feed or our FREE Weekly Newsletter.

Inflation

Related Posts:



Short URL: http://www.munknee.com/?p=18289

The views expressed herein are the views of the author exclusively and not necessarily the views of munKNEE.com or any other munKNEE.com authors, affiliates, advertisers, sponsors or partners. Notices

Posted by on Mar 25 2011, With 0 Reads, Filed under Economy, Inflation/Deflation. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.
Precious Metals Warrants

COMMENTS

To post a comment, you must login using Facebook, Yahoo, AOL, or Hotmail in the box below.
Don't have a social network account? Register and Login direct with our site and post your comment.
Before you post, read our Comment Policy - Legal Notice


Comments Closed

Comments are closed

 

WHAT'S HOT

  1. We’re In For a “Bummer of a Summer” – Here’s Why
  2. The U.S. May Engineer A “Soft Default” – Here’s Why and How
  3. Is a Plan Afoot to Introduce a New Dollar to Repudiate America’s Piles of Debt and Derivatives?
  4. U.S. Dollar Ranks #4 Behind Currencies of Australia, Canada and New Zealand Among G10 Countries Based on Monetary Policy – Here’s Why
  5. Will U.S. Gov’t Eventually Mandate that ‘x’ % of IRA/401K Funds Be In Treasuries?
  6. ALL There Is to Know About Gold Is HERE!
  7. Dr. Nu Yu’s Latest Analyses of Developing Trends in Gold, Silver, HUI and S&P 500 are NOT a Pretty Sight!
  8. How Much Do You Pay in Taxes Compared to Residents of Other Countries? Take a Look
  9. U.S. Financial Crisis Makes Future Rioting In The Streets An Almost Certain Outcome! Here’s Why
  10. Economic Alert: If You’re Not Worried Yet…You Should Be
  11. Tom Fitzpatrick: Stocks to Go Down 27%, Bonds to Go Up to Extreme Levels, Gold to Remain Firm
  12. Marc Faber: We Could Have a Crash Like in 1987 This Fall! Here’s Why
  13. Kunstler: Wake up, Sleepyheads! Things are Heating Up
  14. The Bottom Is Not In Yet For Gold Or Gold Stocks – Here’s Why
  15. Larry Edelson: Inflation Surge Coming No Later Than September! Here’s Why
  16. The Time to Buy Gold Is When There Is Blood In the Streets and That Time Is NOW!
  17. Gold Will Drop to $1,450 This Month Before a Parabolic Move to $3,950!
  18. Stephen Leeb: We Will See Three Digit Silver in a Couple of Years & Much Higher Gold Prices! Here’s Why
  19. U.S. Gov’t Making Preperations for Expected Major Social Unrest Next Year
  20. What are the Major Imports & Exports Between the U.S. and Canada? This List Might Surprise You
  1. Airborne 71: The Author states that no other currency is in circulation and this is true , However , also in the mix...
  2. e-ticaret: Thanks a bunch for sharing this with all people you really know what you are speaking approximately!...
  3. peoplMany people I know that run no cost antivirus use AVG even though I think Avast is often a far better cost-free application. I'm wondering why AVG has such a big following. What are your opinions on the most effective cost-free anti-spyware or antivi: ...
  4. wife just got a virus on her brand-new computer. Great! Now I need to spend the remainder of my day attempting to backup her information and eliminate the malware or re-install the software. Perhaps I need to get a new wife. Just kidding.: ...
  5. MR LEWIS HARRY: I Am Mr. Lewis Harry. A legitimate & accredited Loan lender. We give out loan of all kinds in a...
US


DISCLOSURE: It is our intent that all posts on this site be in accordance with the requirements, restrictions and terms of the Copyright Law of the United States and all other copyright treaties to which the United States is party and more specifically of the Digital Millennium Copyright Act - Blogger . As such, all posts on this website have been screened at Library of Congress Catalog as to their eligibility for posting. Should any post be deemed to be inadvertently in contravention of these Acts' terms please advise with substantiation of such apparent contravention (i.e. registration number) and the article in question will be immediately deleted from the site. Also, visit U.S. Code 17-107 Limitations on Exclusive Rights - Fair Use
FAIR USE NOTICE: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of financial, economic and investment issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.
COPYRIGHT & DISCLAIMER: Lorimer Wilson and Johnny Punish are not registered advisors and do not give investment advice per se. The articles to be found on the site are expressions of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. Please consult with a qualified investment advisor who is licensed by appropriate regulatory agencies in your legal jurisdiction before making any investment decisions, and barring that, we encourage you confirm the facts on your own before making important investment commitments. The information on this site was obtained from sources which we believe to be reliable, but we do not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that while Wilson and Punish may already have invested or may from time to time invest in securities that are recommended or otherwise covered on this website they do not intend to disclose the extent of any current holdings or future transactions with respect to any particular security and, as such, you should consider this before investing in any security based upon statements and information contained in any report, post, comment or recommendation you read on the site.