The CPI and Government Deception

Why does our government deceive us by reporting inflation using the "core" Consumer Price Index (CPI), which excludes food and energy and uses the bizarre "equivalent rent" calculation for housing costs?

We keep hearing that inflation remains benign, but it sure doesn't feel that way when I go to the gas pump or look at housing prices in my neighborhood.

I'd rather pay attention to the market, because it is a far more accurate predictor of economic trends than some contrived government statistic.

For example, the price of gold has historically been a fairly accurate harbinger of inflation.

So what has gold done recently?

Last week, gold hit $700 per ounce - its highest level in over 25 years. Silver recently hit $15 an ounce - its highest level in 25 years.

Gold, silver, and oil all hitting multi-decade highs. Housing prices through the roof. Medical costs spiraling out of control.

Everything we buy that's not made in China is going up in price.

Sounds like inflation to me.