I suppose they forgot about milk, fish, meat, health, home and auto insurance, bus fares and so forth. I am not a government conspiracy person but I suspect they have some improvement needed for the inflation calculation. I don't know a single person who has experienced such low inflation in the real world. Have you?

The Social Security Administration is smoking crack. Housing maintenance costs continue to rise, food costs are up, gas is supposed to hit $4 a gallon this year. Yet no increase in SS benefits in three years. They are just pretending that there is no inflation.

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From hand soap to hot dogs, these staples have gotten smaller over the past few years, according to Consumer Reports. The magazine found "packages reduced in size by as much as 20%."

http://money.cnn.com/galleries/2011/pf/1101/gallery.downsized_consumer_products/index.html

Inflation Is Here

On the other hand, the Fed plan to stoke the fires of inflation is working nicely according to the latest report from economist John Williams at Shadowstats.com. Williams strips away all the accounting gimmicks that make inflation look tamer than reality. The Shadowstats.com report last Friday said, “There are numskulls in the financial media — toadies to the Federal Reserve — who would like to think that energy and food inflation do not count. Simply put, the monthly December inflation releases for the CPI-U (annualized 6.2% inflation), CPI-W (annualized 7.8% inflation) and PPI (14.0% annualized inflation) were disasters . . .”

http://usawatchdog.com/inflation-2011-is-here/

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@MP, I agree...where are they getting their info from?? If this inflation is "low", then I shudder to think about what "high" inflation costs will be this year- we're already feeling it with gas and groceries...

First, Wal Mart's primary gimmick for masking inflation was confined
to using smaller packages sold at the same price. Now, it has devolved
to outright fraud and misrepresentation. Top global discount stores
Wal-Mart and Carrefour have both been fined in China for "misleading
pricing at some of their stores in the nation, as the government works
to rein in rising prices for consumer goods." Presumably outright lies
(and being caught) are the last bastion before even such ultra low
price point retailers are finally forced to hike their prices.
Bloomberg explains further: "Authorities in cities including Shanghai,
Chongqing, and Kunming discovered incidents at local Wal-Mart and
Carrefour outlets that included labeling on products with prices that
didn’t match what shoppers were charged at payment, exaggeration of
discounts and labeling that led to confusion about how much a product
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The stores may be fined five times the revenue they earned using such
methods, the National Development and Reform Commission said today on
its website." Our only advice on this news: get a channel checker for
rice prices in China...

http://www.zerohedge.com/article/wal-mart-fined-china-deceptive-price-practices-mask-inflation

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