Serious Problems With Inflation Index Understate Inflation
I have serious problems with several popular government economic numbers. The first of these is the unemployment rate, which several studies have clearly demonstrated under-report the degree of US unemployment. The second of these is the inflation number. My own experience simply buying and selling goods over the last few years combined with evidence from the financial press adds up to suspicion. After doing some digging on the internet, I realize my concerns are well-founded. The core CPI number has serious flaws that understate inflation, largely because it does not include health insurance premiums and the appreciation of house prices.
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