The Real CPI-Adjusted GDP Growth Rate Was Stunningly Low

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		Tech Entertainment Wall Street Markets Strategy Sports Lifestyle Politics Europe Video Latest Friday, August 26, 2011 The Real CPI-Adjusted GDP Growth Rate Was Stunningly Low The economy grew by 1% in the second quarter, according to inflation-adjusted preliminary data released by the Bureau of Economic Analysis. But to most Americans it did not feel like growth. That's because the inflation adjustment used by the BEA is far more conservative than the Bureau of Labor's consumer price index, which is based on prices paid for goods and services -- i.e. the things that consumers notice. When adjusted for CPI, the economy actually shrunk by a stunning 3.4% in the second quarter, according to Economist Doug Short. Read » Also On Money Game Today: Gundlach Is Sticking With Cash Until Everyone Feels 'Fear' How Retailers Brace For Disaster Weekends Gold Climbs Back To $1800 Banks Are Trimming China Growth Expectations Left And Right Advertisement CHART OF THE DAY: The CBO's Laughably Optimistic Unemployment Projections CHART OF THE DAY: S&P 500 Correlations Hit Record As Stocks Move En Masse CHART OF THE DAY: Here's Why Old People Hurt The Stock Market Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.wyldside@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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