Pragmatus

Inflation Expectations: Main Street vs. Wall Street

It is useless to write anything about inflation if CPI figures are used. Since the 90s the CPI has been nearly beaten out of all recognition by those in government who were desperate to maintain the illusion of low inflation. If the same criteria were being used now to calculate the CPI as was used in the 1970s, the annual rate would be between 8% and 10%. Real inflation is reflected much more accurately by the declining dollar and the soaring prices of oil, food and commodities. Sooner or later everyone will realize that the official CPI is nothing more than an elaborate fairy tale.