Thursday, May 19, 2011

When We and They get mixed up


Here are the details:

That 0.4 percent overall increase in April included a seasonally adjusted 3.3 percent jump in the price of gasoline. But before that adjustment, the CPI really showed gasoline inflation more than twice as bad with an increase of 7.5 percent.

The same thing happened in March. The government seasonally adjusted the increase in gasoline down to 5.6 percent when, unadjusted, it was really 11.7 percent.

Now, don't go getting all conspiratorial on me. This is just the government's seasonal adjustment statistics going haywire because of the odd nature of this economic downturn. Nobody is making these numbers look better on purpose.NY Post

The weightings change on the CPI index as 'They' become more adapted to energy shortages. The 'We' in this case, Bureau of Labor Statistics which, being the aggregate 'We' , takes a long time to collect aggregate data and change the weightings.

Another form of Political Delusion.

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