Reply #14: Do we believe the inflation rate has been 3-4% per year?

[wiggs]

If I think about what things cost more than they did a year ago or two years ago (most goods and services that I can think of) and the things that cost less (electronics?) it is hard for me to believe that inflation is only 3% per year.

Food, clothes, gas, electricity, contractors, plumbers, gardeners, housing, movies, car repair, veterinary bills, plastics, etc....all these costs seem to be a lot more than 6% higher than a couple of years ago.

It's true that the cost of a 4 MP camera might be half of what it was two years ago, but we simply just buy a better camera for the same price. Same with computers. For the things that are cheaper this year, we seem to spend the same amount...but while purchasing a better product.

So...do we suspect inflation figures are misleading for political reasons? For fiscal reasons (low inflation rate triggers lower payouts for benefits and entitlements)?