The Consumer Price Index is a measure of the change in prices consumers pay for different goods over time. This index is often used as a benchmark for inflation. However, the inflation levels the Consumer Price Index suggests are not without controversy. Often inflation is accused of being overstated 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.