Billion Prices Project

First, some follow-up on yesterday's comments.  I called L-3 Communications benefits office to express my concerns about the poor performance of my retirement plan, but I got the gold star dummy treatment.  Ah, it's coming back to me now-- why I was so happy to say goodbye to corporate cubicle life.  I've not given up, but prying any additional information from my pension managers could be tougher than getting hold of Obama's birth certificate.  We'd also be remiss if we didn't thank the Fed Chairman for presiding over the first ever press conference.  With every syllable crossing his lips, our newest holdings gained ground.  I don't know why, but his words of confidence always ring hollow.  He's the sucker who's going to take the rap for this mess and he deserves the honor more than most.

Inflation was a hot topic at today's press conference.  Usually the U.S. Bureau of Labor Statistics Consumer Price Index (CPI) is used to measure price inflation.   However, for several years some have found MIT's Billion Prices Project useful in estimating price inflation.  The Billion Prices Project collects prices from hundreds of online retailers around the world on a daily basis to conduct economic research.  One of the outputs currently produced is an Index of US inflation which is the basis for the chart below.    

Project managers readily admit they don't cover all goods and services due to the nature of online sales.  Still, can you imagine how little is spent on this effort compared with the cost of producing the government's CPI?

Recently the US Index was unavailable for about a week, then reappeared.  The Wall Street Examiner speculates that MIT's explanation of too much work to do is not the entire story.  I hope the project's US Index continues to be produced.  It's a neat use of technology offering an alternative to the often criticized CPI.