Originally Posted by twaddle
Yeah, I think most people feel inflation is understated because they don't have a good feel for what the year-over-year numbers mean.
Think way back to November 1997. 10 years ago. Doesn't seem that long ago to me. Now, how much have prices increased since then?
Have they trippled? Have they doubled? Or have they gone up about 35%?
If inflation was 11%, that means prices trippled in the last decade.
If inflation was 7%, that means prices doubled.
If inflation was 3%, that means prices went up about 35% over the last 10 years.
The CPI-U seems about right to me, but what do I know? It's more fun to believe in government conspiracies.
You said it all in that last sentence.