Ackman is the CEO of Pershing Square Capital.
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Bill Ackman thinks the government is under reporting inflation because of rent prices.
Friday's release of the consumer price index showed a 6.8% increase in November, its highest level since 1982.
The inflation that households are actually experiencing is raging and well in excess of reported gov't statistics.
The consumer price index released by the Bureau of Labor Statistics showed that inflation hit its highest level in over 30 years in November.
Bill Ackman thinks that the figures are overstated due to soaring rent prices that aren't reflected in the inputs used to calculate the consumer price index.
Ackman explained that the consumer price index relies on homeowner surveys to estimate inflation in housing costs. The CEO of Pershing Square Capital said that the metric is very vague and that he uses the single-family rental market for more accurate data.
"Owners' equivalent rent in the report was 3.5%, which was the same as last year." He said that the largest owners of single family rentals are increasing their rents.
The consumer price index could be changed to show different rent increase data. The trend is not likely to be affected by the housing market.
The supply and demand trends of housing inflation are unlikely to abate. The inflation that households are actually experiencing is raging and well in excess of reported government statistics.
The Fed recently signaled that it may speed up the reduction of its monthly bond purchase program as the unemployment rate fell below 5%. Policymakers will release a statement on Wednesday.
The Fed is no longer using the word "transitory" when describing inflation, according to Chairman Powell.
The Fed can tame inflation by raising interest rates, which many market participants will begin next year.
Business Insider has an original article.
