What makes this topical is that Obama's corrupt government is introducing next month an "improved" version of the CPI: Effective with the release of the January 2015 CPI on February 26, 2015, the Bureau of Labor Statistics will utilize a new estimation system for the Consumer Price Index. It appears that the devilish details are concealed within the "Constant Elasticity of Substitution (CES) formula." "The use of the Constant Elasticity of Substitution (CES) formula for initial and interim estimates of the C-CPI-U, and the new quarterly revision schedule for C-CPI-U indexes, are possible because of this new system." Mr. Williams explains the concept of the CES, but does not use the BLS terminology.
The situation has been concisely summarized by another writer thus: "[W]e can make two observations: your currency has been devalued, and this devaluing is not reported as inflation. Standard of living improvements due to technological advancements have been withheld from those who are on fixed incomes and those who keep their wealth in dollar-denominated investments." -- Marotta on Money
Thats the most stupid thing I've ever heard. Typical governmental logic.
Abe was wrong, you can fool all the folks all the time.
I think consumers are at the point that they believe what they experience rather than the phony government numbers.
Keep in mind that net GDP is measured by deducting the CPI from nominal GDP, so the result of underestimating inflation is overestimating the GDP.