Is the US government wildly understating the inflation rate? No, it isn’t

AEI ^ | January 17, 2013 | James Pethokoukis

[1rudeboy]

There I have what? I know what I read. Did you just self-delete as you read?

[WKUHilltopper]

“Of course food and enegy were not included!”

Yep. How convenient. There are liars and there are damn liars.

[1rudeboy]

Not entirely sure how the collapse in the price of my house has changed how much I pay for hamburger. I still buy the same amount (and the price I pay for it has actually slipped a bit).

[Adder]

You are so correct sir.

From the products I regularly use the inflation is in the range of 10-25%. Exactly as you say...reduced size is inflationary also.

My financial guru poo poos it: that its anecdotal and I’m cherry picking but I am not. I can tick of a list of common everyday items that have risen in price by huge amounts....and if a Republican were in the white house, the press would be screming like a pack of wolves.

[1rudeboy]

This is somewhat annoying: if an author does not include food energy, except when he makes certain to include food and energy, does that make him a liar, or a damn liar?

Knee-jerk reactions are difficult to guage.

[First_Salute]

bttt

[Varsity Flight]

“Instead Wall Street has run up nicely over the last couple years and anyone who invested wisely did pretty darn well”

Only if ones government dependent paycheck/COLA hasn’t risen proportionately. Cashing out to a 25-30 K vehicle, compared to what shoud be 5K new vehicle. Or cashing out to a 100-250 K house, to what should be a 25 K house.

[1rudeboy]

What products do you regularly use? I’m simply wondering why I’m missing your 10-25% inflation.

[First_Salute]

bttt

[First_Salute]

bttt

[First_Salute]

bttt

[American in Israel]

Burden is on the inflation hawks eh? How about I Paid 100 bucks to replace a tool that cost 60 bucks 3 years ago.

That is a 10% a year increase in price, ie, INFLATION.

Electrical components are up 200% or more over the last ten years. That is 10% a year.

Got a bag of crimp lugs that have a price tag of 7 bucks a bag on the shelf, Now I pay over a buck a crimp.

Inflation. Of course the Goobermint statistics say there is none, because they dont care about tools or the things that make the country go.

Oh, lets not get into gasoline...

[Mr. K]

4 years ago I was always surprised and disappointed when I went over $200 at the grocery store

Yesterday I topped $400 for the first time.

[AEMILIUS PAULUS]

Agreed. Your experience matches our experience. My little wife constantly reports price increases and shock at same; for example: three New York steaks at COSTCO for about $51.00 just a day or so ago.

[1rudeboy]

Just what the heck did you buy? I haven't had a raise for 4 years, and I'm still feeding myself the same way at nothing close to that sort of an increased outlay.

I did stop eating steak for a while, but my latest flyer has NY strip at $5.99/lb., which is back within striking distance for me.

[First_Salute]

bttt

[First_Salute]

bttt

[Mr. K]

I tend to go shopping like once a month (if I HAVE to) so admittedly my orders are usually very big.

I just never topped $400 before

[WKUHilltopper]

I don’t know, does it?

Everyone knows we don’t need or have to pay for fuel or even food. It should never be included in assessing inflation.

[1rudeboy]

I have a revolutionary idea: let's calculate inflation both ways--including food and energy, and not including food and energy, and then compare the two!

Oh, wait . . . we do that already.