dshort

Follow-up on CPI

Actually, if inflation were calculated using the same methods in place before 1982, the current rate is approaching 12%. The chart on the ShadowStats home page uses the BLS calculation methods from around 1990. For a look at inflation as calculated using the original method (pre-1982), see this ShadowStats chart (scroll down to the CPI Data Series):

www.shadowstats.com/al...

For the big picture of inflation going back to 1915, see this link:

dshort.com/inflation/i...

Frankly, I think the BLS was justified in some of the modifications to their inflation calculation algorithm. But the downside is that it obscures the degree to which today's economy is beginning to resemble the grim stagflation of the '70s and early '80s.