Oct
21

Deficient Data

The CPI is based on 83,300 price quotes/month, but because the government was closed for 11 working days in October, the sample will be based on 40,000 price quotes. Because price quotes for some items are collected bi-annually, it will take six months for inflation data to fully recover from the small October sample. Worse, estimates for GDP, productivity and consumption which are based on CPI, will be similarly harmed.

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