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

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 that inflation in the US may have reached its peak, stock prices, cryptos, precious metals rise higher, and stocks are all soaring.

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. Precious metals and cryptocurrency also saw increases on Wednesday. Gold rose by 0.3%, bitcoin (BTC), and silver rose by 1.43 percent against the U.S. dollars.

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:

In July, the gasoline index dropped 7.7 percent and was offset by increases in food and shelter indexes. The all-items index remained unchanged for 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.

July's CPI Report Shows US Inflation Cooling — Critics Say 'US Government's Formula Understates the Actual Rise in Prices'
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. It is also still below the March Truflation Index peak of 11.4%.

July's CPI Report Shows US Inflation Cooling — Critics Say 'US Government's Formula Understates the Actual Rise in Prices'
Truflation Index, August 10, 2022

“First, it was transitory. Then, it became 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:

Americans still struggle to survive as the dollar value of their currency drops at an average of 8% annually. However, this is not the real inflation picture. Today’s Truflation index shows US inflation at 9.6%. It is lower than July’s 10.5% and a March peak of 11.4%, which reflects the downward trend suggested by the Bureau of Labour Statistics figures (BLS). It is still over 100 basis points above these 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 saidWednesday, “With the CHIPS and Science Law boosting our efforts to make semiconductors right here at home, America is back leading the way.”

In this story, tags
Bankrate, Bitcoin, Bureau of Labor Statistics, Core Inflation, CPI, CPI reporting, Crypto Prices, data, DoW, economics, Greg McBride, Joe Biden, Joe Biden statements, Michael Maharrey, Peter Schiff, schiffgold.com, Stefan Rust, stockindices, Stocks, the Fed, Truflation, Truflation Index, United States Inflation, US Inflation, US Inflation increases

Let us know your thoughts on the July CPI figures. 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? Leave your comments below to share your opinions on the subject.

Jamie Redman

Jamie Redman, a Florida-based financial journalist and news lead at Bitcoin.com News is Jamie Redman. Redman is an active participant in the cryptocurrency community from 2011. Since 2011, Redman has been an active member of the cryptocurrency community. Redman is a prolific writer for Bitcoin.com News, with over 5,700 articles on the most disruptive protocols currently in development.

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