Excerpt:
"When mainstream economists and politicians cite “improvements” to the inflation problem in the US in recent months, what they are commonly referencing are changes to the Consumer Price Index (CPI). However, the CPI is not a measure of total inflation, rather, it is a median snapshot of prices at a particular point and time. True inflation is cumulative – A 10% increase one year and a 5% increase the next year is not a win, it means that you are now paying 15% more on average for everything you buy in the span of only two years.

When CPI falls this does not mean that prices on goods and services are going down, it only indicates that prices are rising slower than they were the month or the year before.

Another misconception about CPI is that it measures the inflation rate accurately for regular consumers on common purchases. In reality, the CPI represents mean average price rate increase for a vast basket of goods; over 94,000 items and services with over 200 separate categories. Most of these items and services you will never use or rarely purchase in the span of a year. In other words, inflation declines in uncommon goods can dilute the numbers, making it seem like inflation is dropping while prices on daily necessities continue to spike.



The CPI is weighted according to consumer spending patterns, which is where the calculations can be “adjusted” to a certain extent in an arbitrary manner. Then there is outright government manipulation through various means. As we witnessed recently with the Biden Administration's claims that “Bidenomics” has defeated the inflation threat, what these reports don't mention is that Biden has been dumping US strategic oil reserves on the market for the past year. And since energy prices effect the inflation of so many other categories, Biden has artificially manipulated the CPI down using one key resource."