Does it Matter If Statistical Agencies Frame the Month's CPI Report on a 1-Month or 12-Month Basis?
13 Pages Posted: 23 May 2016
Date Written: March 15, 2016
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.
Keywords: Announcement, bond, CPI, framing, inflation, market, monthly, reaction, release, statistical
JEL Classification: E, F, G
Suggested Citation: Suggested Citation