MAIN MENUConsumer price index does not reflect spiraling costs
Last Friday we received the encouraging news that the consumer price index is up a mere 2.7 percent over the past year, and that the so-called “core” CPI excluding food and energy rose a paltry 1.2 percent.According to the Federal Reserve Board, inflation remains well contained.
Yet consumers continue to encounter higher prices on nearly everything from tires to toothpaste.
How can we reconcile the apparent discrepancy between the official numbers and our actual experience?