Dear Janet: Your Own Atlanta Fed’s “Core” Inflation Tracker is at Six Year Highs

from Zero Hedge

First the AtlantaFed (with occasional shoulder-tapping exceptions) created a mini revolt in the way GDP was tracked on a day to day basis with its GDP Nowcast, one which pressured the NY Fed to create its own version (influenced by Goldman’s own economic models as the Atlanta Fed’s number are seen as too pessimistic), and now the same Atlanta Fed is casting serious doubt over the government’s official inflation numbers, with its own “sticky-price” CPI tracker.

As it explains, “The Atlanta Fed’s sticky-price consumer price index (CPI)—a weighted basket of items that change price relatively slowly—rose 2.0 percent (annualized) in March, following a 2.7 percent increase in February. The 12-month percent change in the index was 2.5 percent.”

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