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The Importance of Consumer Price Indexes
Inflation rate, it's like a report card. And if our kids were responsible for grading their own report cards, it wouldn't be as shocker if they came home with all A's right? So that this is the problem that we've hired the government to grade its own success in the economy because high inflation would be bad. But over the years, governments have changed the methodology for measuring price increases. The CPI that we use today is nothing like the one that we use, say, in the 1970s.