Kitco News, Released on 1/31/22
John Williams, founder of ShadowStats, calculates inflation using the same methodology that the government used to have for calculating the consumer price index (CPI).
Williams told David Lin, anchor for Kitco News, that the true headline CPI number is loser to 15%, not 7%, as reported by the Bureau of Labor Statistics.
Here’s why the government has a political incentive to “suppress” the reported inflation number.
Walter J. “John” Williams has been a private consulting economist and a specialist in government economic reporting for more than 30 years. His economic consultancy is called Shadow Government Statistics (shadowstats.com). He tracks and reports economic data using the methodologies formerly used by government agencies prior to changes being made to make the reported data look more favorable, and estimates the true, real inflation rate to be significantly higher than the reported rate. He received a bachelor’s degree in economics, cum laude, from Dartmouth College in 1971, and was awarded a master’s degree in business administration from Dartmouth’s Amos Tuck School of Business Administration in 1972, where he was named an Edward Tuck Scholar.