(C) Center for Economic and Policy Research
This unaltered story was originally published on CEPR.NET
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Washington Post Tries to Tell Readers that Fourth Quarter Jump In Inventories Was Due to Higher Prices [1]

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Date: 2022-01-27 16:27:37+00:00

Pretty much everyone looking at the 4th quarter GDP report (including me) noted that a surge in inventories was responsible for 4.9 percentage points of the 6.9 percent growth in the quarter. But, the Washington Post had a unique take, it told readers that inventories didn’t actually rise, it was simply that prices were higher:

“Thursday’s GDP report noted that private inventory investment from motor vehicle dealers was a leading contributor to growth in the final three months of 2021. But that doesn’t mean that dealerships have been able to fill up their lots and catch up with consumer demand. Rather, Jonathan Smoke, chief economist at Cox Automotive, noted that the models themselves have gone up in value as car prices surge higher and higher.

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[1] Url: https://cepr.net/washington-post-tries-to-tell-readers-that-fourth-quarter-jump-in-inventories-was-due-to-higher-prices/

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