A news service for the people of Michigan from the Mackinac Center for Public Policy

While calling "no foul" on a recent ad from the group supporting the Two-Thirds ballot initiative, the Michigan "Truth Squad" gets its facts wrong about inflation. It writes:

The Consumer Price Index over the last year rose 1.7 percent, while personal income in Michigan has been growing about 1 percent per quarter for the last year. (It should be noted that the CPI excludes energy and food, both of which have been rising lately. Food prices in particular are expected to climb, as effects of the drought filter through the food economy.)

While it remains to be seen what impact the drought will have on prices, the Consumer Price Index does, in fact, include food and energy prices. The recent release linked to by the Truth Squad even shows that food and energy are included.

The Truth Squad also mistakes price trends. While gas prices have increased in recent months, year-over-year energy prices are down 3.9 percent instead of increasing as they assert.

Meet James Hohman, Assistant Director of Fiscal Policy at the Mackinac Center. James discusses his latest project, an analysis of Proposal 1, the proposal on personal property tax reform that will appear on the August 5th ballot. Read more about Proposal 1 here: http://www.mackinac.org/20246


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