The price indexes are a shell game. From Ron Paul at birchgold.com:
Birch Gold Group asked me to talk a little bit about inflation today.
Now, if you’re like me, you don’t pay too much attention to the monthly CPI, Consumer Price Inflation reports the Bureau of Labor Statistics (BLS) publishes. They say inflation was +8.3% in April, down just a bit from the +8.5% reported in March. To be honest, that one number just doesn’t have much of an impact on my daily life.
For example, I haven’t really been following the crazy surges in used vehicle prices (in January, they were up 67%!) On the other hand, every time I put gas in my car, I notice the price per gallon. Nationwide, it’s about $4.40/gallon (unless you’re unfortunate enough to have a diesel, then it’s closer to $5.50).
I don’t pay much attention to those CPI reports because they don’t reflect my reality. I do, however, watch my personal expenses. And I hear from everyday Americans, folks just like you, who’re telling me their bills are up anywhere from 10-14% compared to a year ago.
How can that be? If CPI is +8.3% how can families have 10% higher expenses? Somebody’s not telling the truth.
I didn’t have to dig very deep to figure out what’s going on.
Housing prices rise 20%, but BLS shelter costs went up just 4%?
File this under Lies, damned lies and statistics.