Inflation infatuation, or is the price right?(Consumer Price Index)

From: American Demographics | Date: December 1, 1996| Author: Edmondson, Brad | Copyright information

Consumers should pay attention to the Boskin Commission's report on an upward bias in the Consumer Price Index because an adjustment of the Index by even a minimal amount would affect everyone's earnings and spending power. The report's final version is due out in Nov 1996, but an interim report mentions five types of bias that overstate inflation by .7%-2%. Corrective action could significantly reduce the national debt but would also signify lower incomes.

Fixing errors in the Consum...

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