Since the early nineties every administration has put some tweak on how the consumer price index (CPI) is measured. CPI used to be me measured by comparing the price of one basket of goods one year to the same basket of goods the next. Over the last 2 decades many changes have been made the CPI is measured including things with fancy terms such as hedonics and weighting- all fancy terms for “distortion”. Why? Pensions are indexed for inflation. If official inflation is running at a lower percentage then less needs to be paid out to pensionners. Today real inflation clocks in at 4 times CPI. Have you noticed the cost of everything going up more than 2%? See link to chart…
[...] are however living in a time great unreported inflation. Despite the consumer price index, the benchmark around which interest rate decisions are [...]
[...] are however living in a time great unreported inflation. Despite the consumer price index, the benchmark around which interest rate decisions are [...]