CPI is a fraudulent statistic that is HEAVILY MANIPULATED by BLS to artifically keep the reported consumer inflation number down. In recent years, it's a good 1/3 lower then an honest accounting would place it.
The main tricks pulled to manipulate the statistic are such things as 'chain-weighting' and 'hedonic adjustments', and similar bunk.
The simplest examples can be seen in the 'adjustments' to housing or computer prices: With housing, instead of counting housing prices paid, then imput a 'rent-equivalent price'. :) With computers, they artificially DEFLATE the market price by 'adjusting' it for 'improvements in processing power' since the original 8088 Intel chip, LOL!!!!!!!!!!! (This, of course, TOTALLY ignores the simple fact that software has ALSO grown more complex, requiring more process power, over the years.)
The exact same type of mumbo-jumbo is pulled to deflate the prices of home appliances like washing machines, refrigerators, etc. |
