Why Inflation is Higher Than What the Government Reports

In the most recent report by the Bureau of Labor Statistics (BLS), the Consumer Price Index (CPI-U) recorded a 2.9 percent year-over-year increase in the 12 months ending in February.  The Core CPI-U, which eliminates the volatile food and energy sectors, rose by 2.3 percent year-over-year .  Despite these modest numbers there seems to be a widespread perception of higher inflation among the public. Is there a reason why perceived inflation is much higher than the actual BLS statistics? 

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