23 Mayıs 2012 Çarşamba

BPP@MIT Annual Inflation Rate Falls Below 2%

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The top chart above displays annual inflation rates based on daily online retail price data collected by the Billion Prices Project @ MIT, which just released data through April 30.  According to this real-time measure of major inflation trends in the U.S., inflationary pressures have been subsiding since last summer, and the annualized inflation rate fell below 2% at the end of April for the first time since early January 2010, more than two years ago.   

The bottom chart above shows that since January 2010, MIT's online price index has tracked the Consumer Price Index (NSA) pretty closely.  Despite the fact that the MIT online price index doesn't capture all of the items in the CPI, it's still a useful alternative measure of inflationary pressures in the U.S. economy, and gives us additional information about the trends in consumer prices and inflation based on real-time online retail prices.

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