They Can't Hide It Any More: It Will All Hit the Fan in 2007, Part 9

In my previous post about the Consumer Price Index, I explained how the CPI is calculated in a way that hides the true level of inflation in the U.S. economy.

It appears these tricks can no longer hide what's really going on.

As this article from MarketWatch.com states, "Household incomes were flat, consumer spending was tepid and inflation was accelerating in April, putting the Federal Reserve in a pickle about interest rates."

Things aren't looking good.

The April CPI was higher than anticipated, causing the Dow to drop 214 points on May 17.

The Department of Labor now excludes food and energy when calculating the "core CPI".

I wonder what they're going to exclude next?

**********
Links to previous "It Will All Hit The Fan in 2007" posts:
Part 1, Part 2, Part 3, Part 4, Part 4 (Addendum), Part 5, Part 6, Part 7, Part 8
**********