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 understatedShow moreShow less
The government has a vested interest in inflation being understated, and the data it is based on it largely theoretical.