{"id":13512,"date":"2022-08-10T20:56:48","date_gmt":"2022-08-10T20:56:48","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/julys-cpi-report-shows-us-inflation-cooling-critics-say-us-governments-formula-understates-the-actual-rise-in-prices-economics-bitcoin-news\/"},"modified":"2022-08-10T20:56:48","modified_gmt":"2022-08-10T20:56:48","slug":"julys-cpi-report-shows-us-inflation-cooling-critics-say-us-governments-formula-understates-the-actual-rise-in-prices-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/julys-cpi-report-shows-us-inflation-cooling-critics-say-us-governments-formula-understates-the-actual-rise-in-prices-economics-bitcoin-news\/","title":{"rendered":"July’s CPI Report Shows US Inflation Cooling \u2014 Critics Say ‘US Government’s Formula Understates the Actual Rise in Prices’ \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n<\/div>\n

After last June\u2019s 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\u2019s CPI data has come in lower with a year-over-year increase of 8.5%. Economists polled by media publications estimated that July\u2019s CPI data would print 8.7%, however, July\u2019s core CPI, the government\u2019s broadest measure of inflation, remained the same as June.<\/strong><\/p>\n

CPI Report Shows Inflation in the US May Have Peaked, Stocks, Cryptos, and Precious Metals Jump Higher<\/h2>\n

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\u2019s inflation report. Additionally, precious metals and cryptocurrencies saw a rise on Wednesday as well, as bitcoin (BTC<\/a>) jumped over 4% higher, gold increased by 0.35%, and silver jumped 1.43% in value against the U.S. dollar.<\/p>\n

\n

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<\/a><\/p>\n

\u2014 Council of Economic Advisers (@WhiteHouseCEA) August 10, 2022<\/a><\/p>\n<\/blockquote>\n

The Consumer Price Index (CPI) report<\/a> for July 2022 said: \u201cThe 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.\u201d The inflation report adds:<\/p>\n

\n

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.<\/p>\n<\/blockquote>\n

Bankrate\u2019s chief financial analyst Greg McBride told<\/a> Yahoo Finance reporter Alexandra Semenova that the gas price drop was good for the economy, but it doesn\u2019t fix inflationary pressures. \u201cThe drop in gasoline prices has been very welcome, but that doesn\u2019t solve the inflation problem,\u201d McBride said. \u201cConsumers are getting a break at the gas pump, but not at the grocery store.\u201d Moreover, many people have issues with the way the Bureau of Labor Statistics calculates CPI.<\/p>\n

Truflation CEO Says True Inflation Is Running at 9.6% Today, Schiffgold Author Claims Government Formula Understates Real Inflation Numbers<\/h2>\n

Data<\/a> from shadowstats.com\u2019s alternative inflation charts show inflation is much higher than the reported numbers published by the U.S. government. The CEO of Truflation<\/a>, Stefan Rust, says the country\u2019s inflation figures are not accurate and he believes true inflation is running at 9.6% today.<\/p>\n

\"July's
Shadowstats.com\u2019s alternative inflation (CPI) chart on August 10, 2022.<\/figcaption><\/figure>\n

The company\u2019s Truflation Index<\/a> 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.<\/p>\n

\"July's
Truflation Index on August 10, 2022.<\/figcaption><\/figure>\n

\u201cFirst, it was transitory. Next, it was manageable. Now, it\u2019s 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,\u201d Rust said in emailed comments sent to Bitcoin.com News. \u201cThe 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 \u2014 which have the largest impact on poorer citizens \u2014 offset declining prices at the pump.\u201d Rust continued:<\/p>\n

\n

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.<\/p>\n<\/blockquote>\n

Schiffgold.com\u2019s Michael Maharrey said<\/a> 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\u2019s blog believe the CPI is much higher. \u201cIt wasn\u2019t all good news,\u201d Maharrey stressed. \u201cFood prices continued to skyrocket, rising 1.1% from June. Rents also rose.\u201d<\/p>\n

\u201cAnd as I mention every time I talk about CPI, it\u2019s even worse than these numbers suggest. This CPI uses a government formula that understates the actual rise in prices<\/a>,\u201d Maharrey added. \u201cBased on the CPI formula used in the 1970s<\/a>, CPI remains in the 17% range \u2014 a historically high number.\u201d<\/p>\n

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\u2019s economic activity. \u201cLast year, one-third of core inflation was due to high prices for automobiles because of the shortage of semiconductors,\u201d Biden said<\/a> on Wednesday. \u201cWith the CHIPS and Science Law boosting our efforts to make semiconductors right here at home, America is back leading the way.\u201d<\/p>\n

\n
\nTags in this story
\n<\/h6>\n
analyst<\/a>, Bankrate<\/a>, Bitcoin (BTC)<\/a>, Bureau of Labor Statistics<\/a>, Core Inflation<\/a>, CPI<\/a>, CPI report<\/a>, Crypto Prices<\/a>, data<\/a>, DOW<\/a>, economics<\/a>, Economist<\/a>, equities<\/a>, fake CPI<\/a>, fake data<\/a>, Gold Prices<\/a>, Greg McBride<\/a>, inflation<\/a>, Inflation Red Hot<\/a>, Joe Biden<\/a>, Joe Biden statement<\/a>, Michael Maharrey<\/a>, Peter Schiff<\/a>, schiffgold.com<\/a>, Stefan Rust<\/a>, stock indexes<\/a>, stocks<\/a>, the fed<\/a>, Truflation<\/a>, Truflation Index<\/a>, United States Inflation<\/a>, US Inflation rises<\/a><\/div>\n<\/div>\n

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\u2019s being reported? Let us know your thoughts about this subject in the comments section below. <\/strong><\/em><\/p>\n

\n
\n<\/div>\n
\n
\nJamie Redman <\/h6>\n

\nJamie 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.

\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

\n

Disclaimer<\/strong>: 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<\/a> 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.<\/p>\n<\/div>\n

\n