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Does It Matter If Statistical Agencies Frame the Month’s CPI Reporton a 1-Month or 12-month Basis?

Listed author(s):
  • Jeffrey A. Frankel
  • Ayako Saiki

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 always 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 has adopted.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 23754.

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Date of creation: Aug 2017
Handle: RePEc:nbr:nberwo:23754
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