Inflation Is Lower Than Most People Think
Understandably, readers tend to get mad about articles saying prices are rising too slowly.
I got some negative feedback on my Bloomberg Businessweek cover story, “Did Capitalism Kill Inflation?” Lots of readers found it ridiculous that central bankers think inflation is too low. Here’s an excerpt from one email I received from a reader in southwestern Missouri:
This is a widely shared view, not just in what the reader calls flyover country. It is also … wrong. The official measure of inflation, while imperfect, is far more likely to be accurate than the subjective impressions of ordinary consumers. The Bureau of Labor Statistics puts enormous effort into gathering price data for its monthly Consumer Price Index. If you doubt that, peruse its painstakingly detailed, 107-page Handbook of Methods (PDF) or the more reader-friendly FAQ.