Reply #14: Core consumer prices exclude food and energy but that's not the whole story.

[Lasher]

Core inflation is derived from the Personal Consumption Expenditures Index. It is important to know if a cited inflation statistic reflects PCE or the more appropriate Consumer Price Index. The CPI-U (CPI for All Urban Consumers) is the popularly followed inflation measure currently reported in the financial media, although core inflation is sometimes cited by deceitful pundits.

That's just getting started. The PCE notwithstanding, CPI inflation calculations have been manipulated since 1981 to artificially reduce reported rates.



The SGS Alternate above reflects the CPI as if it were calculated using the methodologies in place in 1980. Inflation as reported by the CPI today is understated by roughly 7% per year.

http://www.shadowstats.com/article/56