Shocka! Inflation is much higher than distorted government metrics indicate

Prices are rising. Official inflation numbers are low. What gives?

Newsweek calls it:

And the reason the CPI is losing credibility is that, as economist John Williams tirelessly points out, it’s a bogus index. The way inflation is calculated by the Bureau of Labor Statistics has been “improved” 24 times since 1978. If the old methods were still used, the CPI would actually be 10 percent. Yes, folks, double-digit inflation is back. Pretty soon you’ll be able to figure out the real inflation rate just by moving the decimal point in the core CPI one place to the right.

If you're young, get ready to learn firsthand what stagflation means: Weak job growth, stagnant wages, high unemployment, high inflation, and high interest rates.

As a young man, I lived through the first Carter era. Now, barely more than a generation later, it's time for Carter 2.0. The question is: What comes after?

MIT's Billion Prices Project - Daily Inflation Chart

MIT's Billion Prices Project tracks inflation via online price data.