Fun

July’s CPI Report Shows US Inflation Cooling — Critics Say ‘US Government’s Formula Understates the Actual Rise in Prices’

News Feed - 2022-08-11 02:08:58

July"s CPI Report Shows US Inflation Cooling — Critics Say "US Government"s Formula Understates the Actual Rise in Prices"


After last June’s inflation report published by the U.S. Bureau of Labor Statistics indicated that the Consumer Price Index (CPI) reflected a 9.1% year-over-year increase, July’s CPI data has come in lower with a year-over-year increase of 8.5%. Economists polled by media publications estimated that July’s CPI data would print 8.7%, however, July’s core CPI, the government’s broadest measure of inflation, remained the same as June. CPI Report Shows Inflation in the US May Have Peaked, Stocks, Cryptos, and Precious Metals Jump Higher


The Dow Jones Industrial Average, Nasdaq, S&P 500, and NYSE indexes all jumped significantly higher in value after the U.S. Bureau of Labor Statistics published July’s inflation report. Additionally, precious metals and cryptocurrencies saw a rise on Wednesday as well, as bitcoin (BTC) jumped over 4% higher, gold increased by 0.35%, and silver jumped 1.43% in value against the U.S. dollar. Inflation as measured by headline CPI increased 0.0 percent month-over-month in July, well below its elevated June monthly rate of 1.3 percent. Monthly core inflation in July fell to 0.3 percent. 1/ pic.twitter.com/6bVTZq7m1W


— Council of Economic Advisers (@WhiteHouseCEA) August 10, 2022



The Consumer Price Index (CPI) report for July 2022 said: “The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in July on a seasonally adjusted basis after rising 1.3 percent in June. Over the last 12 months, the all items index increased 8.5 percent before seasonal adjustment.” The inflation report adds: The gasoline index fell 7.7 percent in July and offset increases in the food and shelter indexes, resulting in the all items index being unchanged over the month.


Bankrate’s chief financial analyst Greg McBride told Yahoo Finance reporter Alexandra Semenova that the gas price drop was good for the economy, but it doesn’t fix inflationary pressures. “The drop in gasoline prices has been very welcome, but that doesn’t solve the inflation problem,” McBride said. “Consumers are getting a break at the gas pump, but not at the grocery store.” Moreover, many people have issues with the way the Bureau of Labor Statistics calculates CPI. Truflation CEO Says True Inflation Is Running at 9.6% Today, Schiffgold Author Claims Government Formula Understates Real Inflation Numbers


Data from shadowstats.com’s alternative inflation charts show inflation is much higher than the reported numbers published by the U.S. government. The CEO of Truflation, Stefan Rust, says the country’s inflation figures are not accurate and he believes true inflation is running at 9.6% today. Shadowstats.com’s alternative inflation (CPI) chart on August 10, 2022.


The company’s Truflation Index indicates that at the time of writing, the rate is 9.61%, which is still down from the 10.5% the Truflation Index recorded in July. Further, it is still down from the 11.4% annual peak the Truflation Index recorded in March. Truflation Index on August 10, 2022.


“First, it was transitory. Next, it was manageable. Now, it’s a problem the US is attempting to tackle with a whole new piece of legislation as inflation continues to run at scorching 40-year highs,” Rust said in emailed comments sent to Bitcoin.com News. “The latest data released today provides some welcome relief, with growth in the Consumer Price Index (CPI) slowing to 8.5% in the year to July thanks largely to falling fuel prices. Notably, though, month on month prices remained the same as increases in rent and food costs — which have the largest impact on poorer citizens — offset declining prices at the pump.” Rust continued: This means Americans are still struggling to make ends meet as they watch the value of their money erode at over 8% per year. As bad as all this seems, however, the true inflation picture differs from the above. Today, the Truflation index is showing that US inflation is running at 9.6%. This is down from 10.5% in July, and an annual peak of 11.4% in March, reflecting the same downward trend that the Bureau of Labour Statistics (BLS) figures suggest. However, it remains over 100 basis points higher than these official figures.


Schiffgold.com’s Michael Maharrey said on Wednesday that the latest CPI data was not the greatest and the government formula used to tally the numbers is understated. Maharrey and the economists at Peter Schiff’s blog believe the CPI is much higher. “It wasn’t all good news,” Maharrey stressed. “Food prices continued to skyrocket, rising 1.1% from June. Rents also rose.”


“And as I mention every time I talk about CPI, it’s even worse than these numbers suggest. This CPI uses a government formula that understates the actual rise in prices,” Maharrey added. “Based on the CPI formula used in the 1970s, CPI remains in the 17% range — a historically high number.”


U.S. president Joe Biden discussed the CPI data as well and remarked that new laws and semiconductors manufacturing based in America boosted the country’s economic activity. “Last year, one-third of core inflation was due to high prices for automobiles because of the shortage of semiconductors,” Biden said on Wednesday. “With the CHIPS and Science Law boosting our efforts to make semiconductors right here at home, America is back leading the way.” Tags in this story analyst, Bankrate, Bitcoin (BTC), Bureau of Labor Statistics, Core Inflation, CPI, CPI report, Crypto Prices, data, DOW, economics, Economist, equities, fake CPI, fake data, Gold Prices, Greg McBride, inflation, Inflation Red Hot, Joe Biden, Joe Biden statement, Michael Maharrey, Peter Schiff, schiffgold.com, Stefan Rust, stock indexes, stocks, the fed, Truflation, Truflation Index, United States Inflation, US Inflation rises


What do you think about the CPI data for July? What do you think about the critics and statistics that say true inflation in the U.S. is much higher than what’s being reported? Let us know your thoughts about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today. Federal Reserve Governor Supports More 75bps Rate Hikes Citing "Significant Risk of High Inflation Into Next Year" ECONOMICS | 2 days ago Lebanon Ponzi Finance: World Bank Says Politicians Are to Blame for the "Deliberate Depression" ECONOMICS | 3 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleHuman Protocol Develops New Layer Featuring Voting, Proof-of-Balance, Liquidity, and Slashing – the Routing Protocol Next articleElon Musk Sells Tesla Shares Worth Nearly $7 Billion — Plans to Buy TSLA Stock Back if Twitter Deal Falls Through Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItToday"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits


As the crypto economy hovers just under $2 trillion in value, application-specific integrated circuit (ASIC) mining devices are making decent profits. While ASIC miners can still mine ethereum, a 1.5 gigahash (GH/s) Ethash mining device can rake in $51.58 per ... read more.NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade

News Feed

Nike Acquires NFT Startup RTFKT Studios in Order to ‘Deliver Next-Generation Collectibles’
Nike Acquires NFT Startup RTFKT Studios in Order to "Deliver Next-Generation Collectibles" Nike, the American multinational footwear and sports apparel company has announced the ac
Bitcoin block size hits yearly low: Impact of BTC halving?
Josh O"Sullivan12 hours agoBitcoin block size hits yearly low: Impact of BTC halving?Despite Bitcoin’s block size hitting a yearly low, the Runes minting market continues to show strong activity and profitability.2820
US Senate passes resolution overturning SEC crypto rule on banks
Turner Wright6 hours agoUS Senate passes resolution overturning SEC crypto rule on banksU.S. President Joe Biden said he intended to veto the joint resolution aimed at overturning an SEC rule requiring banks to keep cust
Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians
Custodial Lightning Network Service Attack Discovered by LN "Newbie" — Hacker Strikes 6 LN Custodians On September 18, a Redditor posted to the r/bitcoin forum and explained how
4 Virtual Crypto Conferences You Can Attend From Home
4 Virtual Crypto Conferences You Can Attend From Home The crypto industry has had to quickly adapt to the escalating coronavirus pandemic, with major conferences postponed, cance
Savannah Fortis14 hours agoGoogle sues scammers over creation of fake Bard AI chatbotGoogle has filed a lawsuit against scammers offering a malicious version of its AI chatbot Bard that tricks users into downloading and
Jesse Coghlan8 hours agoCoinbase to file order seeking dismissal of SEC lawsuitPaul Grewal said Coinbase would seek to dismiss the Securities and Exchange Commission’s suit, arguing that the crypto exchange never sold
Marcel Pechman7 hours agoGermany is dragging Europe’s economy down — and that’s great for cryptoCointelegraph analyst and writer Marcel Pechman explains how a weakening German economy — Europe’s largest — is
Tristan Greene3 hours agoKraken to suspend trading for USDT, DAI, WBTC, WETH and WAXL in CanadaAccording to customer emails, the changes will go into effect starting Nov. 30.879 Total views7 Total sharesListen to article
Rumors Claim Large Bitcoin Wallet Is a Whale’s Stash or Microstrategy’s Wallet Despite Conflicting Data
Rumors Claim Large Bitcoin Wallet Is a Whale"s Stash or Microstrategy"s Wallet Despite Conflicting Data Five months ago, Bitcoin.com News published a story concerning the speculati
Tom Mitchelhill3 hours agoScaramucci leads bidding for Silicon Valley Bank VC arm: ReportAnthony Scaramucci’s SkyBridge Capital is among the asset management firms leading the bids for Silicon Valley Bank’s venture c
$1.75 Trillion for Climate Change, Social Services — Biden’s ‘Build Back Better’ Plan Advances While Inflation Grips US
$1.75 Trillion for Climate Change, Social Services — Biden’s "Build Back Better" Plan Advances While Inflation Grips US This week, U.S. lawmakers are preparing to debate the ad