August 15, 2018--Consumer Price Index

The Bureau of Labor Statistics (BLS) is responsible for calculating the inflation rate and Consumer Price Index (CPI). This is important because, among other things, these rates are used to determine whether or not to increase retired people's Social Security. Something these years I keep close track of.

The CPI is the measure of the average change over time in the prices paid by urban consumers for a market "basket" of goods and services. In that metaphoric basket, among many other things, one finds the cost of rent, dental services, and chopped meat.

Inflation is the rate at which the general level of prices for goods and services is rising and, consequentially, the rate at which the purchasing power of money is falling.

Recently I haven't seen much of an increase in my monthly checks. Inflation is deemed to be that low. Almost flat. For example, the BLS is projecting that the inflation rate for 2018 will be "only" 1.9%.

Call me skeptical but I sense it is higher than that. Considerably higher. But how can that be? The federal government, especially this administration, doesn't lie to taxpayers, right?

So on my own I did a little simple checking. With emphases on "little" and "simple."

At Hanniford's, the local supermarket I checked to see if there has been an increase in the price of my favorite yogurt--Dannon. (I always get peach.)

It now costs 65 cents a tiny tub whereas last year it was 55 cents. This represents an 18% increase. Not anywhere near the official 1.9% (Also, a tub now contains 5.3 ounces, down from 6.0, a decrease of 12%)

Rona said, "Let's check the price of your favorite homemade pie. It's been $5.99 for at least a year." So we drove to New Harbor and sure enough at Reilly's market it's now $6.99. About a 17% increase.

Wouldn't I be happy to see my Social Security go up by 17 or 18 percent. But I know better. So how does 10% or even 5% sound?

That would be an example of America being great again.

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