Economist Troy Ludtka exposes flaws in CPI calculation and labor market data

Troy Ludtka, SMBC Nikko Securities Senior U.S. Economist, explains that the latest Consumer Price Index (CPI) numbers, while soft, still suffer from a structural design flaw in the Bureau of Labor Statistics' methodology, particularly concerning the shelter component. He argues that if this lagging indicator were replaced with real-time market rates for housing, inflation would be significantly lower. Ludtka also highlights regional Fed surveys and NFB data indicating a weakening labor market, suggesting the Federal Reserve should be more flexible in its approach to economic data.