So, CPI is not a real number anyway. How it is calculated constantly gets "adjusted." For example, they negate price increases because the "new" version is "better" so "there wasn't really any inflation." (Think about how your car now comes with a standard radio and power windows, so since it is "better" the price increase since the 1950s isn't really a price increase and won't go into CPI.)
And then there is the whack way they calculate how much inflation there is. For example. Let's say you bought a house for $112,500 last year and a "similar" house costs $121,500 this year. Normal people would simply see how much that increased: (112500/121500) * 100= 9.3%
That isn't, as you might have guessed, how the government does it. They use this math problem, which makes little sense to me but lowers the numbers nicely: ((121500-112500)/112500) * 100= 8% Voila! Less inflation despite the truth.
But, this month, the news agencies decided to flat out lie in their headlines about what the report says to push their anti-tariff agenda:
First, let's clear things up--the new tariffs do not go into effect until August 1. That's right--these news agencies, which all know this, are blaming inflation for June on something that will not happen until August. They are picking small pieces of the inflation breakdown to highlight in their report while ignoring or attempting to paint others in a more favorable light.
Second, let's look at the actual report on the BLS website. It states "The index for shelter rose 0.2 percent in June and was the primary factor in the all items monthly increase." Hmm, last I checked Americans did not import shelter from other nations. Generally, we don't live in yurts, tents, or other importable shelter types. I am pretty sure RVs and van conversions are counted as "vehicles" and not shelter despite there ability to be used as such.
The highest 3 year-over-year increases are from shelter, restaurants/food away from home, and utilities (electric and gas). Along with what I said above, I doubt anyone is flying to China and having their takeout imported. Now, we do import utility gas, but we also export utility gas (natural gas/propane) so it seems to me, if it were becoming more expensive to import it, we would just stop exporting so much.
There is so much garbage the news can blame President Trump for--why are they making up false headlines to promote anti-tariff rhetoric?
