Case in point, today's CPI release from the Bureau of Labor Statistics:
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in October on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 1.2 percent before seasonal adjustment.
The index for all items less food and energy was unchanged in October, the third month in a row with no change.
Does anyone in their right mind really believe inflation is only running at 1.2% year over year? Apparently, the complicit criminals at the WSJ do because they ran a headline titled "CPI Data: Fed Was Right, Inflation Frothers Still Wrong," which tries to justify Fed printing money to prevent falling prices. Despite the fact that commodity prices have surged across the board, the media keeps parroting the Fed's propaganda of no inflation because the CPI says so. Does this kind of propaganda work? Don't people see the real inflation rate in their daily lives? Apparently not.
Below is a chart of commodity prices year to date. Outside of cocoa, rice, and natural gas, commodity prices are all up strongly as a result of dollar debasement.
click chart for larger image
Here is chart from John William' Shadow Stats, which shows the real level of inflation.
Which number most fits your real world experience? I can say that John Williams' number is much more reflective of inflation in my life. But then again, I live in the real world and do not have the luxury of excluding food, energy, and other necessities.
Black Swan Insights