Does it Matter If Statistical Agencies Frame the Month's CPI Reporton a 1-Month or 12-Month Basis?

24 Pages Posted: 6 Sep 2017 Last revised: 29 May 2022

See all articles by Jeffrey A. Frankel

Jeffrey A. Frankel

Harvard University - Harvard Kennedy School (HKS); National Bureau of Economic Research (NBER)

Ayako Saiki

Brandeis University - International Business School

Date Written: August 2017

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 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.

Suggested Citation

Frankel, Jeffrey A. and Saiki, Ayako, Does it Matter If Statistical Agencies Frame the Month's CPI Reporton a 1-Month or 12-Month Basis? (August 2017). NBER Working Paper No. w23754, Available at SSRN: https://ssrn.com/abstract=3031725

Jeffrey A. Frankel (Contact Author)

Harvard University - Harvard Kennedy School (HKS) ( email )

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National Bureau of Economic Research (NBER)

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Ayako Saiki

Brandeis University - International Business School ( email )

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