One of the most damaging deceptions emanates from the methods used by the U.S. Bureau of Labor Statistics’ (BLS) calculation of the consumer price index (CPI). You might be surprised to hear that number would be closer to 15 per cent if the BLS used the same formula it did in the 1970s. “Item A is a television that is no longer available, and it has been replaced by a new television, Item B. Rather than use the 400 per cent increase in price between Item A and Item B, the quality adjusted rate of price change is measured by the ratio of the price of Item B in the current period ($1,250.00) over an estimated price of Item B in the previous period – Item B’. There are plenty of incentives for the government in reporting lower inflation figures.

Source: thestar January 12, 2022 08:26 UTC