Sunday, June 8, 2008

Consumer Price Index

Don't you feel we ought to ditch the Core Consumer Price Index that leaves out food and energy costs. I think it is totally hiding the true inflation that we are living with. If food and energy were included in the CPI as it is in most other countries, our CPI would be a healthy 7%. As I notice that the last time I filled up the Nissan Maxima it cost $48.97 and yesterday's fill up was $59.86.
The Government went to the Core CPI because there was a slight overestimation of the inflation rate and this affected Cost of Living Allowances (COLA) for such items as government pensions and Social Security. Now there is a gross underestimation of inflation that is verging on the laughable.

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