Forget Core Inflation. That was an idea created by Alan Greenspan. He was wrong. The core inflation measurement ignored all the things we need to live like food and energy.
“The Consumer Price Indexes(CPI) program produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services”। That is quoted from the U.S. Department of Labor that manages this program.
We really need a measurement that is reliable. I just can’t believe that the current CPI is accurate. There have been articles posted on the internet that do challenge the CPI accuracy. My own views and experiences are the bases for this opinion.
Here is four items that support my opinion.
- Thanksgiving dinners for a family of 10 were reported in the news to cost 11% more in 2007 than 2006.
-Gasoline nationwide has increased in price from $2.14 to $3.10 per gallon during the past 12 months. That is a 44.8% increase.
- Cavaretta’s is a local Italian deli that makes fabulous sandwiches. The 2007 price for their small subway style chicken sandwich was $4.50. This year the price is $5.25. A dismaying 16.7% increase.
- The price for milk at my neighborhood Trader Joe’s (actually over 1½ miles away) increased by 33%.। We buy milk there because it’s about 60% of the prices charged at the local supermarket (about ½ mile from my home).
Will the government become more accurate if there were a change in political parties? No. We all know that the information has been managed because the politicians don’t want to admit the truth.
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