Confusion with CPI numbers

Hal Morris, writing on his Grumpy Editor blog, notes that business journalists covering the same Consumer Price Index statistics released Friday, reported different views on where the economy is headed.

Morris writes, “Note the differences in the treatment, including figures, with the same information from the Labor Department.

“Under the headline, “Slowdown in U.S. Helps to Damp Inflation,” The Wall Street Journal on Saturday noted in its lead that a faltering economy ‘is helping keep overall inflation in check.’

“WSJ writer Kelly Evans added that the CPI rose 0.8 percent in May but core prices (excluding food and energy) rose 2.3 percent from a year earlier.  ‘The data suggest that underlying inflation remains contained,’ Evans added.

“Contrast that with the Associated Press version, working from the same Labor Department material.  Under a typical headline, “Pace of inflation picking up,” AP’s Martin Crutsinger wrote, ‘Soaring energy costs pushed inflation up in May at the fastest pace in six months.’  Then he noted ‘consumer prices rose by 0.6 percent in all, the biggest one-month increase since November.’â€?

Read more here.