Economics Experts Believe True Inflation Rate is Much Higher than the Government’s Official Figures
Inflation has been the biggest economic issue in the last few months as people have seen the hard-earned money wither away thanks to a generalized cost-of-living crisis.
Earlier this week, the Biden regime bragged about the official inflation rate declining. However, several experts believe inflation is considerably higher than the official numbers indicate.
According to the Bureau of Labor Statistics’ latest figures, the headline inflation rate, as demonstrated by the Consumer Price Index (CPI), ostensibly fell down 8.5% in July from a 41-year high of 9.1% in June.
In addition, the month-over-month CPI inflation figure stood at 0%. In other words, the rate of price growth did not change between June and July. These numbers motivated Biden to declare victory against inflation by declaring that the “economy had zero percent inflation in the month of July.”
Though several analysts believe that the Biden regime’s “zero” inflation by contending that the president was cherry-picking the data by excessively concentrating too much on the month-over-month growth rate while casting aside the year-over-year rate of inflation. Tom Ozimek of The Epoch Times noted that the year-over-year inflation rate “remained a historically elevated 8.5 percent.”
On top of that, several contrarian economic observers argue that official inflation figures understate the true inflation rate. These analysts alluded to factors like lags in housing costs weighed in the government’s CPI inflation measures.
Economist John Williams has put forward an alternative metric for measuring inflation, which uses the same methodology that the US government used back in the 1980s. Per Wiliams’ figures, July’s inflation figure is around 16.8% in annual terms. This is almost double the official inflation figure. In a similar vein, June’s inflation numbers, per Williams’ metrics, were 17.3% — a 75-year high.
In Williams’ estimation, the present BLS methodology for determining inflation is flawed in how it measures how the average American experiences changes in their living standards.
“Individuals look to the government’s CPI as a measure of the cost of living of maintaining a constant standard of living, as well as measuring that cost of living in terms of out-of-pocket expenses. Without meeting those parameters, an inflation measure has limited, if any, use for an individual,” Williams proclaimed.
“Where the CPI at one time met those parameters desired by the public, government efforts turned the CPI away from measuring the price changes in a fixed-weight basket of goods and services, to a quasi-substitution-based basket of goods, which destroyed the concept of the CPI as a measure of the cost of living of maintaining a constant standard of living,” Williams stated.
Indeed, the state has every reason to fudge inflation figures. Part of the ruling class’s staying power is its ability to manipulate public perception with regards to inflation and their overall living standards.
Many Americans have been duped to believe in accepting the notion their living standards are rising when in reality people can see with their own eyes notable declines in their living standards. America First must stand firmly against the central banking industrial complex and the regulatory state. These entities are responsible for the country’s current economic misery.