How the Government Understates the Inflation Rate in the US

ByPrimary Researcher

Executive Summary

  • The US government has a long term pattern of understating the inflation level.

Introduction

The Consumer Price Index or CPI was changed, as is explained in this article, How Accurate Are Shadow Stats on the Understatement of US Inflation With the New CPI?

The US government plays these statistical games, among a host of other reasons, in order to reduce the payouts to Social Security. Under a debt-free currency, understanding inflation would not be necessary and it would not necessary to chisel seniors. Recall that a high percentage of social security is spent on the economy.