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Does It Matter If Statistical Agencies Frame the Month's CPI Report on a 1-Month or 12-Month Basis?

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  • Frankel, Jeffrey

    (Harvard University)

  • Saiki, Ayako

    (De Nederlandsche Bank)

Abstract

When the US Bureau of Labor Statistics releases new numbers, in theory it should make no difference whether the press release emphasizes the most recent 1-month number, which is what it does, or the 12-month number, as many other countries' statistical agencies do. This paper offers the hypothesis that it does matter: Markets react to CPI inflation news via whichever framing the agency chooses.

Suggested Citation

  • Frankel, Jeffrey & Saiki, Ayako, 2016. "Does It Matter If Statistical Agencies Frame the Month's CPI Report on a 1-Month or 12-Month Basis?," Working Paper Series 16-011, Harvard University, John F. Kennedy School of Government.
  • Handle: RePEc:ecl:harjfk:16-011
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    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E7 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics
    • F3 - International Economics - - International Finance
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G4 - Financial Economics - - Behavioral Finance

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