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Always Adjust For Inflation, Consumer Spending Edition

News accounts this morning inform us that consumer spending was up in April, but this isn't actually true. Reporters, as usual, aren't bothering to adjust for inflation. Once you do that, spending was flat:

Does this matter? Not a lot, but the nominal number makes it look like spending has finally reached its pre-pandemic trendline. Once you adjust for inflation, you can see that it didn't.

It's not a huge difference, especially since the inflation numbers are kind of bollixed for the next few months, but it is a difference. Always adjust for inflation!

3 thoughts on “Always Adjust For Inflation, Consumer Spending Edition

  1. frankwilhoit

    National statistics are not useful. There are three economies: the one based on Government procurement, the one based on the manipulation of financial instruments, and the one that is in accelerating vertical free-fall.

  2. ey81

    Always adjust for inflation. Always report numbers on a per capita basis. Kevin is 100% about both of these things, and it would be a better world if more people listened to him. (Maybe if anyone listened to him.)

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