Robert McClelland Profile picture
Senior Fellow @taxpolicycenter. Previously chief Price Index Research Division @BLS_gov, senior analyst @USCBO. Retweets≠endorsements. Opinions are my own
Dec 23, 2021 6 tweets 2 min read
1/6 Yesterday I learned that BLS produces experimental price indexes for new vehicles, cars and trucks. Published indexes show annual inflation at ~11%, but these experimental indexes show annual rates of 19% to 21%.… #EconTwitter 2/6 Some background: to create the CPI, the BLS combines price changes into ‘lower level’ indexes, like Chicago eggs or New York apples. A national all-items index can be formed as a weighted average of the LL indexes. The CPI-U uses weights taken from a single time period;