Why CPI Is Not an Accurate Measure of…

Inflation is deeply personal. Your personal rate of inflation depends on where you live, work, and shop, how old you are (maybe you are in college, or are older and have a significant amount of medical expenses), and your consumer preferences. Quite often the Consumer Price Index, or CPI, the official measure of inflation used by the U.S. government, doesn’t accurately reflect our real-world experience with inflation. It’s no coincidence that CPI seems inaccurate. The index has been manipulated for political and economic gain. It’s important to know exactly how CPI works, why it is not a reliable indicator of inflation, and what that means for you and your money.

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