http://www.zerohedge.com/news/2012-12-20/guest-post-why-reported-inflation-seems-different-reality
The article above will improve your understanding of the history of lying on inflation. The author blames Clinton for starting it. But I recall Nixon started changing the numbers as inflation was running an exorbitant (/s) 4% due to the Viet Nam war spending that started under LBJ. The reason they lie is because all of the entitlement programs are indexed to this number. If inflation is 10%/year (a very realistic number from 1970-2008) then the value of a dollar is cut in half every 10 years. This would make entitlement spending double every 10 years. Someone getting $15,000 in Social Security in 1985 would get $30,000 in 1995. We know that isn’t happening and it’s not because the government lies. If they weren’t lying then they’d have to reign-in the spending and control the budget. Congress hasn’t passed a budget since Obama got elected. If they did they’d be admitting that their spending is unsustainable and the dollar would be worth no more than the Soviet rubble by…well, today.