What's wrong with this picture

The same thing is happening in Australia. I dont know what the US does but here they use all sorts of tricks like 'food substitution' and weighting stats (for their benefit, both ways) done recently when a cyclone destroyed the banana crop and prices shot up.

Food substitution is like if the price of beef roast rises the people will eat ground beef (or kangaroo) the cheaper alternative etc.

No time to go into it but inflation is out of control here and the CPI does not reflect it. Although it is at the high end of the Aussie feds comfort zone :D
 
Quote from TradingWise:

I would say PROVE IT! People like you keep on pumping these insane ideas without factual basis and pretend these are hard facts. How do you want to prove the official CPI numbers are incorrect by taking a subset of the total CPI basket (food) and of that subset, show only the highest percentage price increases? That's a double bias.

Why do people think that the US government arranged 911 or to a lesser extend manipulates the CPI numbers? Does the government even have control over the CPI numbers, the statistics agency is independent in the USA right? People need to grow up and get educated.
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Has already been proven:

http://www.shadowstats.com/cgi-bin/sgs?

Maybe you are the one in need of growing up and being educated.
 
Quote from TradingWise:

It's really easy to call everything BS, but the CPI is probably a pretty good approximation of the inflation level.

Your personal opinion is usually a bad indicator of where inflation really is because you tend to put more weight on for example products that have sharply risen in value. The picture in the first post is very misleading.
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Joe sixpack has his own CPI and his own definition of inflation. The govt CPI is psychological, joe sixpack is real money.
 
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