How does the government compute inflation?

  1. Ari Lamstein profile image82
    Ari Lamsteinposted 5 years ago

    How does the government compute inflation?

    How accurate is the current method?  What are some alternative methods?

  2. Peter Leeper profile image82
    Peter Leeperposted 5 years ago

    I  beleive they take what is called a "basket" of consumer goods and track the rises and falls of their prices.  You will notice that they often give a standard inflation rate and another that does not include changes in gasoline prices for comparison.  The consumer price index is a component that measures inflation based on a basket of goods for example.  Check out this linke for an inflation calculator provided by the government.

  3. Fawntia profile image
    Fawntiaposted 5 years ago

    I've seen people link to this web site as an alternative to government inflation statistics in the U.S.: … ion-charts

    But I don't know how credible those numbers are. The 1980-based chart seems especially hard to believe.