“The cost of food has doubled, tripled, quadrupled…”

That is Mr. Trump on inflation. Here is the data:

Figure 1: CPI for household consumption (blue), chained (tan), both in wood, 2021M01=0. The chained CPI is seasonally adjusted by the author using X-13. The NBER has defined recession days as shaded in gray. Source: BLS and author’s calculations.

The graph above shows the true number (admittedly, government statistics, rather than Trumpian anecdotes) is far less than four times that.

This entry was posted in with Menzies Chinn.


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