Federal Reserve Inflation Report Gets a Mystery Math Makeover
Economists were bracing for bad news, but a sudden change in how the Bureau of Economic Analysis counts things made the numbers look a whole lot friendlier.
So, the Bureau of Economic Analysis just dropped their inflation report, and it is suspiciously better than everyone expected. While the market was sweating a 3.7% increase, the number came in at a crisp 3%.
Here is the kicker: they just swapped out their math methodology. They changed how they measure stuff like legal fees and software costs right before the big reveal. It is like failing a test, changing the grading scale, and suddenly walking out with a B-plus.
People are still dropping 20 billion extra on gas, and the personal savings rate is hovering at 4.1%, but hey, at least the headline looks less terrifying on paper now. It turns out that if the math is too hard, just rewrite the equation.
Source: Bureau of Economic Analysis
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