JEast Posted October 12, 2010 Share Posted October 12, 2010 As many of us agree that the US 'CPI' is somewhat suspect, there is new competition coming soon. The Google Price Index by Google's chief economist will be publishing their website data with which you can compare. "Mr Varian said that the GPI shows a “very clear deflationary trend” for web-traded goods in the US since Christmas." I guess the bond market already, or was, expecting this. http://www.cnbc.com/id/39626164 Cheers JEast Link to comment Share on other sites More sharing options...
SmallCap Posted October 12, 2010 Share Posted October 12, 2010 Let me see if I have this straight: ShadowStats has "proven" that the CPI understates inflation. Google has stated that in the online world the CPI has overstated inflation Not exactly a apples to apples comparison because of Google's focus on the online world but still it add more impetus to question all three measures and not take any of them as gospel. Seth Link to comment Share on other sites More sharing options...
JEast Posted October 12, 2010 Author Share Posted October 12, 2010 I am sure most have known for sometime that the US CPI understates their computation of inflation and all would tend to agree with ShadowStats. However, I believe the question on the table is, 'are we measuring the right things'? That is we all have opportunity costs and can change our behavior. Take the bus when gas gets to $4US, change to a cheaper brand, or go to Wal-mart versus Target. Do we have agriculture inflation currently. Sure, but is that a weather issue (i.e. Russia). Plus, other inputs to agriculture are not inflating and now appear to be a wash when the final product hits the store. I stopped by a Wal-mart super center as it recently opened. Bananas were 0.49lb. Teaser rate probably, but when you can ship bananas from Ecuador and include transportation, distribution, and the lot and still make a penny a pound - we live in a wonderful time. Cheers JEast Link to comment Share on other sites More sharing options...
Zorrofan Posted October 12, 2010 Share Posted October 12, 2010 There was some talk Google had not yet decided if they would make their results public or not.... cheers Zorro Link to comment Share on other sites More sharing options...
Parsad Posted October 12, 2010 Share Posted October 12, 2010 Neither index is completely accurate. Google's excludes raw material costs, etc. It will give a pretty good idea of end product inflation or deflation...thus it would be a lagging indicator to inflationary or deflationary costs at the producer/wholesale level. Cheers! Link to comment Share on other sites More sharing options...
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