CPI Numbers Are Unreliable, At Best

The Department of Labor, part of the fine administration that always tells the absolute truth, has released the latest inflation figures (see Latest Business News and Financial Information | Reuters.com).

Interesting that this report comes straight on the heals of Greenspan warning of more interest rate hikes.

I won’t get into the nitty gritty details of the article, with the exception of one.

Food costs rose just 0.1 percent, as did prices for housing, recreation and education and communication.

Who are they kidding? Housing costs have been on a rampage for years, as has the cost of education. And they show no signs of abating. Maybe the DOL is netting communications costs against those two, and subtracting 5% for shits and giggles.

And one more note – interesting how they always ignore health care costs.

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