Non-Linguistic Inflation Framing in the Wall Street Journal
January 12, 2024·17 comments·In Brief
The Wall Street Journal uses identical inflation data to tell opposite stories, shifting which metrics are highlighted depending on whether the desired narrative is alarm or reassurance. The same dataset becomes a warning or a comfort based on what Wall Street and Washington need to be true. The charts themselves have become a tool for narrative construction rather than data revelation.
• Core CPI simply vanishes and reappears depending on the story. In summer 2022, when the narrative required alarm about inflation, core CPI wasn't shown in standard release graphics at all. Once the story shifted to "inflation is cooling," core CPI suddenly became the bright red centerpiece of the same article format.
• The same "important metric" argument is used to hide and reveal the same data. Financial media now insists core CPI is what matters most to the Fed and investors. Yet this metric was conveniently absent from their own graphics when it contradicted their preferred story just months earlier.
• Visual framing isn't accidental or neutral. The progression from beige lines to bright red, from visible to faded, from prominent to dotted: these choices mirror exactly when the narrative priorities changed, not when the data changed.
• This works because most readers see the picture, not the dataset. A chart is absorbed faster than numbers. The eye goes to bright red. The eye misses faint dotted lines. The narrative becomes reality through visual hierarchy before a reader processes the actual values.
• The mechanism reveals something deeper about how narratives function in markets. It's not outright deception but selective emphasis deployed for specific stakeholder interests. Wall Street wants cheap money. Washington wants election confidence. The charts serve both.
Subscribe Today to Read More
Unlock instant access to this and hundreds of other evergreen essays that explore the world of narrative through hard science and human wisdom.
- Make more informed decisions as an investor and citizen.
- See through the nudges of Big Politics and Big Media.
- Become a better consumer of news.
- Maintain your autonomy of mind in a swarm of narratives.
- Join a community of more than 100,000 truth-seekers.
Looking for Deeper Insights?
Unlock exclusive market intelligence, trade ideas, and member-only events tailored for investment professionals and active investors with Perscient Pro.
VISIT PRO
DISCLOSURES
This commentary is being provided to you as general information only and should not be taken as investment advice. The opinions expressed in these materials represent the personal views of the author(s). It is not investment research or a research recommendation, as it does not constitute substantive research or analysis. Any action that you take as a result of information contained in this document is ultimately your responsibility. Epsilon Theory will not accept liability for any loss or damage, including without limitation to any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Consult your investment advisor before making any investment decisions. It must be noted, that no one can accurately predict the future of the market with certainty or guarantee future investment performance. Past performance is not a guarantee of future results.
Statements in this communication are forward-looking statements. The forward-looking statements and other views expressed herein are as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and there is no guarantee that any predictions will come to pass. The views expressed herein are subject to change at any time, due to numerous market and other factors. Epsilon Theory disclaims any obligation to update publicly or revise any forward-looking statements or views expressed herein. This information is neither an offer to sell nor a solicitation of any offer to buy any securities. This commentary has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Epsilon Theory recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives.
Comments
Being a westerner, I am quite partial to suggestive images of the Dollar wearing sexy lingerie.
Is that wrong?
As for the Pound, well all I can say is despite the dowdy appearance and the occasional headache, its a goer.
Compelling analysis Ben that proves your point even more emphatically than the word-based analyses. A picture is worth a thousand words. I would guess that more automated approaches to image analysis are now within reach of ET.
I believe ”July 2022” is a typo here, should instead be “July 2023.” I point it out only because it confused me in the context of the various examples and timeline.
Totally agree, and might I suggest another medium worthy of exploration: intonations of the human voice, AKA audio.
Thank you! Got it right in caption and wrong in the text. Appreciate the correction!
As a daily WSJ reader, I have been sensing a distinct ‘Pollyannish’ editorial bias in the graphic displays. However, I did not take the next step the compare the tabular data to the graphics. Thanks for the insightful analysis. Is the WSJ a prominent member of the ‘Wall Street Cheer-leading Team’? Do they want eye balls on screen? Do they know how to use fear & greed?
Its all over the place. Headlines, ledes, contents. Same with Bloomberg.
The finance industry needs interest rates to come down and no inflation and the main cheerleaders in the MSM are there to help them out, as always.
It strikes me that the most telling part of the article is that a subway token is up to $2.90! talk about paying more for worse service. I would expect hedonics there to be out of sight.
But thank you for highlighting the ongoing BS that passes for news reporting.
What is this token thing that you speak of?
Speaking of which, my wife informed me that my Metrocard will soon be a museum piece.
I remember the Y tokens from going to visit my Dad’s office in the city in the early 70s.
Continue the discussion at the Epsilon Theory Forum...