Why Lie About Inflation? Because It Covers Up Other Bigger Lies

Why Lie About Inflation? Because It Covers Up Other Bigger Lies | Zero Hedge

The US Government hides this fact by changing the CPI regularly to underplay the threat of inflation. One of the most famous examples is the decision to drop food and energy prices from directly impacting the CPI via a gimmick called “hedonic adjustments.”  In simple terms, if food or gas prices jump 100%, the CPI won’t rise anywhere near that much.

The CPI rigging goes much further than this.  The CPI also adjusts how it measures the price of homes and rents. So if home prices or rent prices jump substantially, the jump won’t show up in the CPI.

By way of example, think back to the summer of 2008. At that time, the price of gasoline was at an all time high with Oil priced at nearly $150 per barrel. Food prices were approaching records. And home prices were only 10% off their all-time highs.