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Is inflation understated? Show more Show less

The Consumer Price Index is a measure of the change in prices consumers pay for different goods over time, and is often used as a benchmark for inflation. However, the inflation levels it suggests are not without controversy, and are often accused of being over- or understated. So what is the truth? And why would it be either?

Yes, inflation is understated Show more Show less

The government has a vested interest in inflation being understated, and the data it is based on it largely theoretical.
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Inflation is multi-dimensional.

Representative basket of goods varies by geography and income bracket. There should be thus multiple inflation numbers reflecting this.

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This page was last edited on Tuesday, 28 Jan 2020 at 14:42 UTC