Mark Zandi

We know that prices did increase, that there was some inflation.

And so because of but because they assume no inflation in October, you know, when you look at year over year after October, that's bias lower because of that assumption.

Right.

So you want to correct for that.

And, you know, there's no slam dunk.

This is the right way to do it.

But we took a crack at it.

And, you know, based on that work, we found that inflation is not 2.7 percent on CPI inflation.

It's 3 percent.

And, you know, I think most people who really pay attention to this stuff, not the typical American, it would be pretty nerdy for them to get down and dirty with this kind of stuff.

But for the folks that, you know, live and die and breathe inflation,

You know, what's going on in the financial system, financial markets, bonds, and the stock market.

Folks at the Federal Reserve, you know, they know this, and they're making their own adjustments, and they're all coming up with the same thing we are.

Inflation is about 3%.

Well, Ed, I think you're going to have to keep inviting me back for a while.

Until next October, because the numbers will be biased lower until we kind of do a round trip here and get to the other side.

So next October.

But even then, you've got the problem on the other side, because then it'll be biased too high because these numbers we're looking at today are too low.

So, you know, the work all this out of the data probably takes several years.

But, you know, right now it matters most because...