What is the true US inflation rate?

James J. Puplava argues that inflation in America is really 6-8% and that the goverment is fudging numbers to avoid increasing socail security benefits (thereby increasing the deficit).

I’m not sure that I agree with anumber as high as 6%, but I do agree that excluding energy makes inflation numbers artificially low. Rising proprty taxes are also excluded. In addition, used car prices are used instead of new car prices, which were going up each year. Rent prices were overweighted even though 69% of households own a home (real estste prices are increasing quickly and appropriate weighting would supposedly lead to higher inflation numbers).

One Response to “What is the true US inflation rate?”

  1. Mugre says:

    In recent years I’ve increased the governments annual inflation number in my investment portfolio to help ensure that my projected numbers are adequate to meet my needs.

    I agree that the government is purposefully fudging the numbers (using inputs that do not adequately reflect actual inflation), most likely to minimize social security, federal and military retirement, and federal and military salary growth.

    It would be much better if our government aimed toward honesty and then made the hard program cutting/eliminating decisions to get healthy.