If you measure inflation the way they did in the 1970s, before the ludicrous shift to “hedonic pricing,” it’s 11.6%, not 4%. Alan Abelson:
John Williams, of Shadow Government Statistics, who does a crackerjack job of trying to provide an accurate and honest translation of those smiley data that Uncle Sam’s minions churn out. We’ve noted John’s efforts in this space before and, you may recall, his approach is to present the figures cleansed of all manner of fudging and figuring designed to put as happy a face as possible on them by the government’s numbers crunchers.
In calculating the real consumer price index, for example, John goes back to pre-1980 data, before the noxious numerical fiddling began.
By his antiseptic reckoning, the official CPI reading for March of 4% was actually 11.6% or, if you’re in a particularly lenient mood and base the measure on a somewhat less stringent methodology, the rate would be a still formidable 7.3%.
Of course, Abelson adds that news that the economy and money erosion is nearly as bad as in the dark days hasn’t stopped some (crazy) people from fretting about…deflation.
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